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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. A Third Party Demand is issued by the Canada Revenue Agency for:

A) Overpaid Employment Insurance benefits
B) A debt owed to a third party creditor
C) Unpaid income taxes or unpaid statutory deductions
D) Outstanding child support and/or maintenance payments

2. Matt earns $10.10 per hour and works 37.5 hours per week. Calculate Matt's regular bi-weekly earnings.

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

4. An employee who lives in Ontario and reports to work at a permanent establishment of the employer in Quebec will have income tax deducted based on which province?

A) Quebec
B) Employee's choice
C) Ontario & Quebec
D) Ontario

5. Which of the following is not correct?

A) Severance payments and retiring allowances are not reported in Block 15B
B) Vacation pay reported in Block 17A is reported in Block 15B
C) Bonus payments reported in Block 17C are also reported in Block 15B
D) Block 15B is not completed when insurable earnings are reported in Block 15C

Solutions: