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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Tanya submitted a letter of resignation to her employer on April 2 of the current year advising that she would be resigning her position effective April 27 for the pay period ending April 28. What date will appear in Block
11 of Tanya's Record of Employment?

A) April 27 of the current year
B) None of the above
C) April 30 of the current year
D) April 2 of the current year

2. Bonus and incentive pays are subject to which statutory deductions?

A) Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
B) Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes
C) Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
D) Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
/Nunavut payroll taxes

3. Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

A) Block 15C only
B) Block 15B only
C) Block 17C only
D) Blocks 15B and 17C

4. Anne Massy works for Liberty Promotions in Nunavut and is provided with a company-leased automobile.
The automobile was in Anne's possession for 365 days. Of the 34,134 kilometres driven, 15,805 kilometres were for business purposes. The monthly lease cost of the vehicle was $198.60, excluding GST calculated at
5%. Anne requested in writing that Liberty Promotions use the optional operating cost method if all conditions apply. She did not reimburse the company for any of the expenses associated with the automobile.
Calculate Anne's annual automobile taxable benefit.

5. An organization pays the premiums for a sickness or accident plan for their president only. This would be considered:

A) A cash taxable benefit
B) A non-cash taxable benefit
C) None of the above
D) A taxable allowance

Solutions: