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National Payroll Institute PF1 Exam Syllabus Topics:

SectionWeightObjectives
Communication and Compliance10%- Stakeholder communication
  • 1. Employee, government, third-party requirements
    - Accuracy and documentation
    • 1. Record keeping and audit trails
      Termination and Special Payments30%- Termination payments
      • 1. Wages in lieu of notice, severance pay
        • 2. Retiring allowances, death benefits
          - Leaves and absences
          • 1. Vacation pay, statutory holidays
            • 2. Sick leave, maternity/parental leave payments
              Record of Employment (ROE)20%- Submission and deadlines
              • 1. Electronic vs paper filing
                - ROE completion requirements
                • 1. Insurable/pensionable earnings reporting
                  • 2. Block-by-block reporting rules
                    Individual Pay Calculations40%- Regular earnings
                    • 1. Pay period types and frequency
                      • 2. Hourly, salary, commission calculations
                        - Non-regular earnings
                        • 1. Allowances, taxable benefits
                          • 2. Overtime, bonuses, retroactive pay

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            1. Which statutory deductions is salary continuance subject to?

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


                            2. Paula is granted a pay increase. The paperwork informing the payroll department of the pay increase is two pay periods late. What method would be used to calculate income taxes on the separate retroactive payment?

                            A) Bonus tax method
                            B) Tax table method
                            C) Retroactive tax method
                            D) Lump-sum tax method


                            3. Matt earns $10.10 per hour and works 37.5 hours per week. Calculate Matt's regular bi-weekly earnings.


                            4. A death benefit is a:

                            A) Life insurance payment made by an insurance company on the death of an employee
                            B) Payment made by an employer of any outstanding earnings to an employee on their death
                            C) Payment made by an employer of vacation pay owing to an employee on their death
                            D) Discretionary payment made by an employer on the death of an employee, in recognition of the employee's service


                            5. 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 average earnings from the past five years with the employer and its associated companies
                            B) The employee's age plus the employee's average earnings from the past five years with the employer and its associated companies
                            C) The employee's wages at the point of receiving the retiring allowance
                            D) The employee's number of years of service with the employer and its associated companies prior to
                            1996


                            Solutions:

                            Question # 1
                            Answer: D
                            Question # 2
                            Answer: C
                            Question # 3
                            Answer: Only visible for members
                            Question # 4
                            Answer: D
                            Question # 5
                            Answer: D

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