National Payroll Institute Payroll Fundamentals 1Exam (PF1) Free Practice Test
Question 1
Feraz Dalia is due $12,523.00 in legislated wages in lieu of notice that will be added to his last weekly pay of
$1,080.00. Calculate Feraz's Employment Insurance (EI) premium, if his employer is situated in Saskatchewan and the yearly maximum contribution will not be exceeded.
$1,080.00. Calculate Feraz's Employment Insurance (EI) premium, if his employer is situated in Saskatchewan and the yearly maximum contribution will not be exceeded.
Correct Answer:
$221.73 (employee EI premium)
Explanation:
In Saskatchewan (outside Quebec), EI premiums are deducted at the 2026 employee EI premium rate of $1.63 per $100 of insurable earnings (1.63%).
CRA guidance confirms that wages in lieu of termination notice are subject to EI premiums, and to determine statutory deductions you include the wages in lieu with the regular income (if any) for the pay period.
Step 1: Determine total insurable earnings in the final pay (assuming both amounts are insurable and the annual maximum won't be exceeded):
$12,523.00 + $1,080.00 = $13,603.00.
Step 2: Calculate EI premium:
$13,603.00 × 1.63% = $13,603.00 × 0.0163 = $221.7289, which rounds to $221.73.
So, the EI premium to deduct from Feraz's pay for this combined payment is $221.73.
Explanation:
In Saskatchewan (outside Quebec), EI premiums are deducted at the 2026 employee EI premium rate of $1.63 per $100 of insurable earnings (1.63%).
CRA guidance confirms that wages in lieu of termination notice are subject to EI premiums, and to determine statutory deductions you include the wages in lieu with the regular income (if any) for the pay period.
Step 1: Determine total insurable earnings in the final pay (assuming both amounts are insurable and the annual maximum won't be exceeded):
$12,523.00 + $1,080.00 = $13,603.00.
Step 2: Calculate EI premium:
$13,603.00 × 1.63% = $13,603.00 × 0.0163 = $221.7289, which rounds to $221.73.
So, the EI premium to deduct from Feraz's pay for this combined payment is $221.73.
Question 2
A retiring allowance includes:
Correct Answer: A
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Question 3
Tanya submitted a letter of resignation to her employer on April 2 of the current year advising that she would be resigning her position effective April 27 for the pay period ending April 28. What date will appear in Block
11 of Tanya's Record of Employment?
11 of Tanya's Record of Employment?
Correct Answer: C
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Question 4
Which of the following situations would not require an employer to issue a Record of Employment?
Correct Answer: B
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Question 5
The source deductions form completed by all new employees in Quebec is called:
Correct Answer: B
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Question 6
The amount of notice the employer must give an employee depends on:
Correct Answer: B
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Question 7
Ronda earns $12.50 per hour and worked 40 hours this week. Calculate her Canada Pension Plan (CPP) contribution for this weekly pay period.
Correct Answer:
$25.75
Explanation:
First calculate Ronda's pensionable earnings for the week. Her gross pay is:
$12.50 × 40 = $500.00.
CPP is calculated on pensionable earnings after subtracting the basic exemption (the Year's Basic Exemption, YBE), prorated to the pay period. The CRA confirms the YBE is $3,500 and the employee CPP contribution rate for 2026 is 5.95% for base CPP.
Weekly exemption = $3,500 ÷ 52 = $67.31 (rounded to cents).
Pensionable earnings subject to CPP this week = $500.00 # $67.31 = $432.69.
CPP contribution = $432.69 × 5.95% = $432.69 × 0.0595 = $25.745..., which rounds to $25.75.
This deduction continues each pay until the employee reaches the annual CPP maximum contribution for the year (at which point CPP stops for the remainder of the year).
Explanation:
First calculate Ronda's pensionable earnings for the week. Her gross pay is:
$12.50 × 40 = $500.00.
CPP is calculated on pensionable earnings after subtracting the basic exemption (the Year's Basic Exemption, YBE), prorated to the pay period. The CRA confirms the YBE is $3,500 and the employee CPP contribution rate for 2026 is 5.95% for base CPP.
Weekly exemption = $3,500 ÷ 52 = $67.31 (rounded to cents).
Pensionable earnings subject to CPP this week = $500.00 # $67.31 = $432.69.
CPP contribution = $432.69 × 5.95% = $432.69 × 0.0595 = $25.745..., which rounds to $25.75.
This deduction continues each pay until the employee reaches the annual CPP maximum contribution for the year (at which point CPP stops for the remainder of the year).
Question 8
In Block 12 of the Record of Employment, the final pay period ending date for employees who are paid solely by commission or are paid salary plus irregularly paid commission will be:
Correct Answer: C
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