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Updated: Nov 12, 2026

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National Payroll Institute PF1 Exam Overview:

Certification Vendor:National Payroll Institute
Exam Name:Payroll Fundamentals 1
Exam Number:PF1
Passing Score:65%
Exam Price:$499.00 – $649.00 CAD
Real Exam Qty:73–75
Related Certifications:Payroll Compliance Legislation
Payroll Fundamentals 2
Certificate Validity Period:3 years
Exam Format:Multiple-choice, Fill-in-the-blank, Case studies
Available Languages:English
Exam Duration:120 minutes
Recommended Training:Official PF1 Online Course
Exam Registration:National Payroll Institute Registration
Sample Questions:National Payroll Institute PF1 Sample Questions
Exam Way:Remote online proctored exam; available via online, classroom, or challenge options
Pre Condition:Successful completion of Payroll Compliance Legislation (PCL) course/exam
Official Syllabus URL:https://payroll.ca/certification/payroll-fundamentals-1

National Payroll Institute PF1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Individual Pay Calculations40%- Non-regular earnings
  • 1. Overtime, bonuses, retroactive pay
    • 2. Allowances, taxable benefits
      - Regular earnings
      • 1. Pay period types and frequency
        • 2. Hourly, salary, commission calculations
          Topic 2: Communication and Compliance10%- Accuracy and documentation
          • 1. Record keeping and audit trails
            - Stakeholder communication
            • 1. Employee, government, third-party requirements
              Topic 3: Termination and Special Payments30%- Termination payments
              • 1. Wages in lieu of notice, severance pay
                • 2. Retiring allowances, death benefits
                  - Leaves and absences
                  • 1. Sick leave, maternity/parental leave payments
                    • 2. Vacation pay, statutory holidays
                      Topic 4: Record of Employment (ROE)20%- ROE completion requirements
                      • 1. Block-by-block reporting rules
                        • 2. Insurable/pensionable earnings reporting
                          - Submission and deadlines
                          • 1. Electronic vs paper filing

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            Question #1

                            Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
                            $10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

                            • A. $10,000.00
                            • B. $7,500.00
                            • C. None of the retiring allowance is eligible
                            • D. $2,000.00
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

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                            Question #2

                            By the authority of which Act can the Canada Revenue Agency garnish the wages of an employee who has failed to pay Employment Insurance premiums, Canada Pension Plan contributions, or income tax deductions?

                            • A. The Employment Insurance Act
                            • B. The Canada Pension Plan Act
                            • C. The Income Tax Act
                            • D. The Creditors' Relief Act
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

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                            Question #3

                            Which pension plan requires the services of an actuary to study and forecast future needs of the plan to ensure the plan remains sufficiently funded to provide employees with their retirement benefits?

                            • A. Defined benefit pension plan
                            • B. Registered Retirement Savings Plan
                            • C. All of the above
                            • D. Defined contribution pension plan
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

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                            Question #4

                            Charmaine's employment was terminated by her employer on April 13 of the current year. Charmaine had worked for her employer for 3 years and was paid 3 weeks of legislated wages in lieu of notice and two weeks' vacation pay with her final pay. What date should be recorded in Block 11 on Charmaine's Record of Employment?

                            • A. April 13 of the current year
                            • B. Block 11 would not be completed
                            • C. May 4 of the current year
                            • D. None of the above
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

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                            Question #5

                            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.

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            $7,900.10
                            Explanation:
                            Anne has both an automobile standby charge (because the car was made available) and an operating expense benefit (because the employer paid operating costs and she did not reimburse).
                            1) Standby charge (leased auto): Lease cost for standby charge purposes includes GST and excludes insurance.
                            Monthly lease incl. GST = $198.60 × 1.05 = $208.53.
                            Standby charge per month = 2/3 × $208.53 = $139.02.
                            Days available ÷ 30 = 365 ÷ 30 = 12.17, rounded to 12.
                            Annual standby charge = $139.02 × 12 = $1,668.24.
                            2) Operating expense benefit: Personal km = 34,134 # 15,805 = 18,329.
                            Optional method requires the automobile be used primarily (>50%) for business; Anne's business use is under
                            50%, so the optional method does not apply and the fixed rate must be used.
                            Fixed rate (2026) = $0.34/km # 18,329 × 0.34 = $6,231.86.
                            Total taxable benefit = $1,668.24 + $6,231.86 = $7,900.10.

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