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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
1. 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) $7,250.00
C) $5,000.00
D) $2,000.00
2. The employee-employer relationship is deemed to be severed when:
A) None of the above
B) There is no expectation of work to be performed by the employee
C) The employee continues to accrue benefits in the organization's pension plan
D) The employee retains the right to be recalled to work
3. Evangeline earns $1,075.00 weekly plus $154.00 in overtime. Calculate Evangeline's Quebec Parental Insurance Plan (QPIP) premium.
4. Which statutory deductions is salary continuance subject to?
A) All deductions except Quebec Parental Insurance Plan premiums
B) All deductions
C) All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums
D) All deductions except Employment Insurance premiums
5. Bonus and incentive pays are subject to which statutory deductions?
A) Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
/Nunavut payroll taxes
B) Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
C) Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
D) Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: Only visible for members | Question # 4 Answer: B | Question # 5 Answer: C |

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