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National Payroll Institute PF1 exam : Payroll Fundamentals 1Exam

PF1 Exam Questions
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Oct 20, 2026
  • Q & A: 75 Questions and Answers
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About National Payroll Institute PF1 Exam Guide

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Payroll Fundamentals and Compliance Framework- Payroll system overview in Canada
  • 1. Payroll process cycle (gross-to-net)
    • 2. Employer payroll obligations
      - Payroll legislation and regulatory bodies
      • 1. Income Tax Act basics
        • 2. Canada Pension Plan (CPP) requirements
          • 3. Employment Insurance (EI) rules
            Payroll Records and Compliance Reporting- Recordkeeping requirements
            • 1. Employee payroll records
              • 2. Retention requirements
                - Government reporting
                • 1. Remittance reporting processes
                  • 2. Year-end reporting (T4 slips)
                    Earnings, Deductions, and Taxation- Types of earnings
                    • 1. Regular wages and salaries
                      • 2. Overtime and special payments
                        • 3. Taxable benefits
                          - Deductions and remittances
                          • 1. Statutory deductions
                            • 2. Employer remittance responsibilities
                              • 3. Voluntary deductions

                                National Payroll Institute Payroll Fundamentals 1Exam Exam: Questions Candidates Actually Ask

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                                The National Payroll Institute Payroll Fundamentals 1Exam exam requires 65% to pass, and registration costs Varies (typically CAD $300–$500 range per exam, subject to region and membership status). A failed attempt means paying the same fee again — a readiness check with the TorrentExam engines before booking is the cheaper option.

                                The official National Payroll Institute Payroll Fundamentals 1Exam outline defines 3 domains. The leading three are Payroll Fundamentals and Compliance Framework, Earnings, Deductions, and Taxation, and Payroll Records and Compliance Reporting. The full list is in the topics section above, and TorrentExam's 75 practice questions cover each one.

                                The National Payroll Institute Payroll Fundamentals 1Exam exam contains Approximately 100 to complete within 180 minutes. Timed simulation in the TorrentExam Desktop Test Engine teaches that rhythm before exam day does.

                                No formal prerequisite, but basic understanding of payroll or employment standards is recommended Since requirements change over time, confirm the latest on the official National Payroll Institute exam page before scheduling.

                                Three versions of the same study materials: a printable, expert-prepared PDF with free demo download and instant access; a Desktop Test Engine for Windows that simulates the real exam with two practice modes and works offline; and an Online Test Engine for any browser on Windows, Mac, Android, and iOS with test history and performance review. All 75 practice questions are identical across versions. Every purchase includes 365 days of free updates, a 50% renewal discount afterward, and unlimited computer installations.

                                The PF1 exam is a National Payroll Institute certification exam validating the National Payroll Institute Payroll Fundamentals 1Exam syllabus shown above. It belongs to these credential paths: Payroll Fundamentals 2 (PF2), Payroll Fundamentals 3 (PF3), Payroll Compliance Practitioner (PCP). Earning it in 2026 demonstrates ability in a form employers recognize — and TorrentExam prepares candidates with 75 practice questions in PDF, Desktop Test Engine, and Online Test Engine formats.

                                National Payroll Institute recommends these training resources for the National Payroll Institute Payroll Fundamentals 1Exam exam:

                                Follow the training with steady self-testing — the 75 practice questions from TorrentExam help you apply theory and fill any gaps the training leaves.

                                National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                                Question #1

                                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
                                Reveal Solution  Discussion  0

                                Correct Answer: A  🗳️

                                Question #2

                                The employee-employer relationship is deemed to be severed when:

                                • A. There is no expectation of work to be performed by the employee
                                • B. None of the above
                                • C. The employee continues to accrue benefits in the organization's pension plan
                                • D. The employee retains the right to be recalled to work
                                Reveal Solution  Discussion  0

                                Correct Answer: A  🗳️

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

                                Question #3

                                Vacation pay on termination would be recorded in which Block(s) on the Record of Employment?

                                • A. Block 15B only
                                • B. Blocks 15B, 15C P.P. 1 and 17A
                                • C. It would not be recorded
                                • D. Block 17A only
                                Reveal Solution  Discussion  0

                                Correct Answer: B  🗳️

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                                Question #4

                                National Hardware, an Ontario organization, will be terminating the employment of Emilie St. Germain on October 28, 2019, the last day of the pay period. Emilie started with National Hardware on September 19,
                                2007. Complete the paper Record of Employment (ROE) for Emilie based on the information provided in the following chart.
                                Note: Vacationable earnings already include the pay in lieu of notice.
                                All dates must be entered in the format DDMMYYYY.

                                Paper ROE (Form Reference)
                                Complete the following paper ROE blocks for Emilie:
                                Block 6 - Pay period type
                                Block 8 - Social Insurance Number
                                Block 10 - First day worked
                                Block 11 - Last day for which paid
                                Block 12 - Final pay period ending date
                                Block 15A - Total insurable hours
                                Block 15B - Total insurable earnings
                                Block 17A - Vacation pay
                                Block 17C - Other monies (Pay in lieu of notice)
                                Block 17C - Other monies (Severance)

                                Step 1 - Complete Block 6
                                Enter the pay period type for Emilie.
                                Step 2 - Complete Block 8
                                Enter Emilie's Social Insurance Number.
                                Step 3 - Complete Block 10
                                Enter Emilie's first day worked in DDMMYYYY format.
                                Step 4 - Complete Block 11
                                Enter Emilie's last day for which paid in DDMMYYYY format.
                                Step 5 - Complete Block 12
                                Enter the final pay period ending date in DDMMYYYY format.
                                Step 6 - Complete Block 15A
                                Calculate and enter total insurable hours.
                                Given:
                                Hours worked per pay period = 80.00
                                Bi-weekly ROE pay period chart captures 27 pay periods
                                Step 7 - Complete Block 15B
                                Calculate and enter total insurable earnings.
                                Given:
                                Pay period earnings = $1,884.62
                                Bi-weekly ROE pay period chart captures 27 pay periods
                                Step 8 - Complete Block 17A
                                Calculate and enter vacation pay.
                                Given:
                                Vacation pay rate = 6%
                                Vacationable earnings = $52,050.00
                                (already includes pay in lieu of notice)
                                Step 9 - Complete Block 17C
                                Enter the correct amount in 17C for "Other monies" specified as Pay in lieu of notice.
                                Given:
                                Pay in lieu of notice = 8 weeks
                                Use weekly earnings derived from the bi-weekly pay period earnings.
                                Step 10 - Complete Block 17C
                                Enter the correct amount in 17C for "Other monies" specified as Severance.
                                Given:
                                Severance = 10 weeks
                                Use the same weekly earnings used in Step 9.

                                Reveal Solution  Discussion  0

                                Correct Answer:

                                See the Below Explanation for complete Solution.
                                Explanation:
                                Step 1 - Block 6
                                Bi-weekly
                                Step 2 - Block 8
                                435837159
                                Step 3 - Block 10
                                September 19, 2007 # 19092007
                                Step 4 - Block 11
                                October 28, 2019 # 28102019
                                Step 5 - Block 12
                                October 28, 2019 # 28102019
                                Step 6 - Block 15A (Total insurable hours)
                                80.00 × 27 = 2160
                                Block 15A = 2160
                                Step 7 - Block 15B (Total insurable earnings)
                                $1,884.62 × 27 = $50,884.74
                                Block 15B = 50,884.74
                                Step 8 - Block 17A (Vacation pay)
                                $52,050.00 × 6% = $3,123.00
                                Block 17A = 3,123.00
                                Step 9 - Block 17C (Pay in lieu of notice)
                                Weekly earnings = $1,884.62 ÷ 2 = $942.31
                                Pay in lieu = $942.31 × 8 = $7,538.48
                                Block 17C (Pay in lieu of notice) = 7,538.48
                                Step 10 - Block 17C (Severance)
                                Severance = $942.31 × 10 = $9,423.10
                                Block 17C (Severance) = 9,423.10

                                Question #5

                                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
                                Reveal Solution  Discussion  0

                                Correct Answer: D  🗳️

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