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National Payroll Institute PF1 Valid Braindumps - Payroll Fundamentals 1Exam

PF1
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Sep 10, 2026
  • Q & A: 75 Questions and Answers
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About National Payroll Institute PF1 Exam

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Topic 2: Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Topic 3: Year-End Processing- Federal and provincial year-end reporting
  • 1. T4 and RL-1 preparation
  • 2. Year-end reconciliations
Topic 4: Non-Regular Payments- Special payroll payments
  • 1. Vacation pay calculations
  • 2. Bonus payments
Topic 5: Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Benefit taxation
  • 2. Allowances and reimbursements
Topic 6: Payroll Accounting- Payroll accounting practices
  • 1. Payroll reconciliations
  • 2. Journal entries
Topic 7: Termination of Employment- Termination processing
  • 1. Termination pay calculations
  • 2. Severance payments
Topic 8: New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms
Topic 9: Provincial Remittances- Provincial payroll requirements
  • 1. Provincial payroll taxes
  • 2. Provincial reporting obligations
Topic 10: Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Topic 11: Workers’ Compensation- Workers compensation administration
  • 1. Employer reporting
  • 2. Premium calculations
Topic 12: Commission Payments- Commission payroll processing
  • 1. Tax treatment of commissions
  • 2. Commission earnings calculations
Topic 13: Federal Remittances- Government remittance obligations
  • 1. Income tax remittances
  • 2. CPP and EI remittances

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question #1

The amount of notice the employer must give an employee depends on:

  • A. The employee's length of service and the jurisdiction in which they work
  • B. The size of the employer's payroll
  • C. The employee's length of service and the jurisdiction in which they live
  • D. The industry in which the employer operates
Answer: A

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Question #2

The formula for calculating net pay is:

  • A. Gross earnings minus total tax
  • B. Gross earnings minus total deductions
  • C. Pensionable earnings minus total deductions
  • D. Net taxable income minus total deductions
Answer: B

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Question #3

A premium payment for overtime hours worked or a rate per piece of goods produced is an example of:

  • A. Benefits
  • B. Expense reimbursements
  • C. Earnings
  • D. Allowances
Answer: C

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Question #4

Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

  • A. A taxable allowance
  • B. A cash taxable benefit
  • C. None of the above
  • D. A non-taxable allowance
Answer: A

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Question #5

Rosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2015 and she was paid a $62,500.00 retiring allowance. Rosa joined her company's pension plan in 1986 and was fully vested on termination of employment. Calculate the non-eligible portion of the retiring allowance.

Answer:

$32,000.00 non-eligible portion
Explanation:
CRA requires separating a retiring allowance into an eligible and non-eligible portion. The eligible portion is the maximum that can be transferred to an RRSP/RPP under the special rules (without using regular RRSP room). The formula is: $2,000 for each year (or part-year) of service before 1996, plus an additional $1,500 for each year (or part-year) before 1989 in which the employee had no employer pension/DPSP benefit vested at the time of payment (or previously paid).
Rosa worked from 1983 to 1995 (inclusive) for pre-1996 service: 13 years × $2,000 = $26,000.
For the extra pre-1989 amount: she joined the pension plan in 1986 and was fully vested when paid the retiring allowance in 2015, so 1986-1988 do not qualify for the extra $1,500. However, 1983-1985 were years before 1989 when she had no vested employer pension benefit, so 3 years × $1,500 = $4,500.
Eligible portion = $26,000 + $4,500 = $30,500.
Non-eligible portion = $62,500 # $30,500 = $32,000.

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