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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. An interruption of earnings occurs when there is a period of how many days with no insurable earnings?

A) Seven calendar days
B) Five calendar days
C) Seven business days
D) Five business days

2. A retiring allowance includes:

A) Accumulated overtime
B) Vacation pay
C) Bonus or incentive pay
D) Legislated wages in lieu of notice in Quebec
E) None of the above

3. Vacation pay on termination would be recorded in which Block(s) on the Record of Employment?

A) Block 17A only
B) It would not be recorded
C) Blocks 15B, 15C P.P. 1 and 17A
D) Block 15B only

4. The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:

A) TP-1015.R.13.1-V
B) TD1
C) TD1X
D) T777

5. An employee in Ontario was paid a $25,000.00 retiring allowance. The eligible portion was $15,000.00 and was transferred to the employee's Registered Retirement Savings Plan (RRSP) by the employer. Calculate the income tax on the non-eligible portion.

A) $1,000.00
B) $5,000.00
C) $7,250.00
D) $2,000.00

Solutions: