National Payroll Institute PF1 : Payroll Fundamentals 1Exam

Exam Code: PF1

Exam Name: Payroll Fundamentals 1Exam

Updated: Oct 10, 2026

Q & A: 75 Questions and Answers

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PF1 exam dumps

National Payroll Institute PF1 Exam Syllabus Topics:

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

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            Question #1

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

                            • A. Capital cost, availability, business kilometres
                            • B. Capital cost, sales taxes, availability
                            • C. Capital cost, sales tax, availability, total kilometres, business kilometres, and personal kilometres
                            • D. Capital cost, total kilometres, personal kilometres, and business kilometres
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

                            Explanation: Only visible for TestkingPDF members. You can sign-up / login (it's free).

                            Question #2

                            In which province or territory is the employer-paid premium for private health insurance coverage that includes dental and prescription coverage considered to be a non-cash taxable benefit?

                            • A. Ontario
                            • B. Quebec
                            • C. British Columbia
                            • D. Yukon
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

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                            Question #3

                            Duncan Drapak was employed in Ontario. Upon termination of his employment, he will be paid $7,760.00 legislated wages in lieu of notice together with his final weekly pay of $875.00. Calculate Duncan's Canada Pension Plan (CPP) contribution if the yearly maximum contribution will not be exceeded.

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            $509.78
                            Explanation:
                            Legislated wages in lieu of notice are treated as pensionable employment earnings for CPP purposes, so they are included with the employee's final regular pay when calculating CPP deductions (assuming no CPP exemption applies).
                            Step 1: Determine total pensionable earnings for the week:
                            $7,760.00 + $875.00 = $8,635.00.
                            Step 2: Subtract the CPP basic exemption (Year's Basic Exemption is $3,500 annually). For a weekly payroll, the basic exemption is prorated:
                            $3,500 ÷ 52 = $67.31.
                            CPP contributory earnings for the week:
                            $8,635.00 # $67.31 = $8,567.69.
                            Step 3: Apply the 2026 CPP employee contribution rate of 5.95% (base CPP). The question states the annual maximum will not be exceeded, so no capping is required in this calculation.
                            CPP contribution:
                            $8,567.69 × 5.95% = $509.7777..., rounded to $509.78.

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

                            Correct Answer: A  🗳️

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                            Question #5

                            What is the portion of a retiring allowance eligible to be transferred into a Registered Retirement Savings Plan (RRSP) or a registered pension plan (RPP) tax free based on?

                            • A. The employee's average earnings from the past five years with the employer and its associated companies
                            • B. The employee's number of years of service with the employer and its associated companies prior to
                              1996
                            • C. The employee's age plus the employee's average earnings from the past five years with the employer and its associated companies
                            • D. The employee's wages at the point of receiving the retiring allowance
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

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