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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Ursula is 17 years old, works in Quebec and earns $750.00 weekly. Ursula pays weekly union dues of $18.00 along with a special weekly union assessment of $10.00 for construction of a new union hall for its members.
Ursula also has registered pension plan (RPP) contributions of $20.00 deducted from each pay. Calculate Ursula's net federal taxable income.

2. 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 number of years of service with the employer and its associated companies prior to
1996
D) The employee's wages at the point of receiving the retiring allowance

3. Charlene receives $50.00 each pay for her meals. This is an example of:

A) None of the above
B) An allowance
C) A reimbursement
D) A benefit

4. 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 15C only
B) Block 15B only
C) Blocks 15B and 17C
D) Block 17C only

5. The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:

A) TD1X
B) TP-1015.R.13.1-V
C) T777
D) TD1

Solutions: