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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. In Block 6 of the Record of Employment, what pay period type is entered for employees who are paid salary plus regularly paid commission?

A) Monthly
B) Weekly
C) Irregular
D) Depends on the pay period frequency

2. 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.

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

4. 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 number of years of service with the employer and its associated companies prior to
1996
B) The employee's average earnings from the past five years with the employer and its associated companies
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

5. When would a Record of Employment be issued for an employee paid mainly by commission?

A) When the employee has not earned any commission after six months
B) When the employment relationship has been severed
C) An employee mainly paid by commission is not entitled to receive a Record of Employment
D) When the employee has had seven consecutive calendar days without both work and insurable earnings

Solutions: