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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Alyssa is a member of her employer's Defined Contribution Pension Plan. The plan defines the contribution as 3% of the employee's pensionable earnings, with the employer matching the employee's contribution.
Alyssa's pensionable earnings are $3,400.00 per month. Calculate the total payment to be remitted to Alyssa's Defined Contribution Pension Plan each month.

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

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

3. The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?

A) New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
B) Alberta, Saskatchewan and Manitoba
C) Northwest Territories, Nunavut and Yukon
D) All Canadian provinces and territories

4. Charlene receives $50.00 each pay for her meals. This is an example of:

A) A reimbursement
B) An allowance
C) A benefit
D) None of the above

5. An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:

A) An allowance
B) An expense reimbursement
C) A benefit
D) An earning

Solutions: