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National Payroll Institute Payroll Fundamentals 1Exam : PF1 Exam

PF1 Exam Questions
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Jul 22, 2026
  • Q & A: 75 Questions and Answers
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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Termination of Employment- Termination processing
  • 1. Termination pay calculations
  • 2. Severance payments
Provincial Remittances- Provincial payroll requirements
  • 1. Provincial payroll taxes
  • 2. Provincial reporting obligations
Workers’ Compensation- Workers compensation administration
  • 1. Employer reporting
  • 2. Premium calculations
Federal Remittances- Government remittance obligations
  • 1. Income tax remittances
  • 2. CPP and EI remittances
Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Non-Regular Payments- Special payroll payments
  • 1. Vacation pay calculations
  • 2. Bonus payments
Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Overtime calculations
  • 2. Salary and hourly wage calculations
Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
New Employee Information- Employee setup and documentation
  • 1. Federal and provincial tax forms
  • 2. Payroll records management
Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Year-End Processing- Federal and provincial year-end reporting
  • 1. T4 and RL-1 preparation
  • 2. Year-end reconciliations

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. An organization pays the premiums for a sickness or accident plan for their president only. This would be considered:

A) A cash taxable benefit
B) A non-cash taxable benefit
C) None of the above
D) A taxable allowance


2. Which pension plan requires the services of an actuary to study and forecast future needs of the plan to ensure the plan remains sufficiently funded to provide employees with their retirement benefits?

A) All of the above
B) Defined contribution pension plan
C) Registered Retirement Savings Plan
D) Defined benefit pension plan


3. Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

A) Block 15B only
B) Block 15C only
C) Block 17C only
D) Blocks 15B and 17C


4. Which statutory deductions is salary continuance subject to?

A) All deductions
B) All deductions except Quebec Parental Insurance Plan premiums
C) All deductions except Employment Insurance premiums
D) All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums


5. Which of the following types of payments made by a private organization would not be subject to all statutory deductions?

A) Vacation pay when no time was taken
B) Performance bonus
C) Retroactive adjustment
D) Directors' fees


Solutions:

Question # 1
Answer: B
Question # 2
Answer: D
Question # 3
Answer: C
Question # 4
Answer: A
Question # 5
Answer: D

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