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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. When would a Record of Employment be issued for an employee paid mainly by commission?

A) An employee mainly paid by commission is not entitled to receive a Record of Employment
B) When the employee has had seven consecutive calendar days without both work and insurable earnings
C) When the employment relationship has been severed
D) When the employee has not earned any commission after six months

2. In Block 12 of the Record of Employment, the final pay period ending date for employees who are paid solely by commission or are paid salary plus irregularly paid commission will be:

A) The Sunday of the week in which the last day for which paid, reported in Block 11, occurs
B) The Saturday of the week in which the last day for which paid, reported in Block 11, occurs
C) The last date for which paid
D) The last date of the pay period

3. 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

4. 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) $7,250.00
B) $5,000.00
C) $2,000.00
D) $1,000.00

5. What information is required to calculate thestandby charge, thereduced standby charge, and theoperating cost benefitfor a company-owned automobile?

A) Capital cost, sales taxes, availability
B) Capital cost, total kilometres, personal kilometres, and business kilometres
C) Capital cost, sales tax, availability, total kilometres, business kilometres, and personal kilometres
D) Capital cost, availability, business kilometres

Solutions: