National Payroll Institute PF1 Exam : Payroll Fundamentals 1Exam

National Payroll Institute PF1 exam
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Aug 27, 2026
  • Q & A: 75 Questions and Answers
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National Payroll Institute PF1 Exam Syllabus Topics:
SectionObjectives
Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms
Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Termination of Employment- Termination processing
  • 1. Severance payments
  • 2. Termination pay calculations
Non-Regular Payments- Special payroll payments
  • 1. Vacation pay calculations
  • 2. Bonus payments
Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Year-End Processing- Federal and provincial year-end reporting
  • 1. Year-end reconciliations
  • 2. T4 and RL-1 preparation
Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Non-Statutory Deductions- Voluntary deductions
  • 1. Benefit premiums
  • 2. Union dues
Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question 1

Which of the following situations would not require an employer to issue a Record of Employment?

A. Employee is laid off and will not be recalled
B. Full-time employee went on 6 weeks' unpaid leave of absence
C. Employee's earnings fall to 40% of their normal weekly earnings
D. A business is sold and the new owner retains all employees and payroll records with no loss of earnings


Question 2

Rosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2015 and she was paid a $62,500.00 retiring allowance. Rosa joined her company's pension plan in 1986 and was fully vested on termination of employment. Calculate the non-eligible portion of the retiring allowance.


Question 3

How many pay periods will be used to calculate insurable earnings inBlock 15Bon the Record of Employment if the employee is paidweekly?

A. Last27pay periods (or less if period of employment is shorter)
B. Last7pay periods (or less if period of employment is shorter)
C. Last13pay periods (or less if period of employment is shorter)
D. Last14pay periods (or less if period of employment is shorter)


Question 4

Anne Massy works for Liberty Promotions in Nunavut and is provided with a company-leased automobile.
The automobile was in Anne's possession for 365 days. Of the 34,134 kilometres driven, 15,805 kilometres were for business purposes. The monthly lease cost of the vehicle was $198.60, excluding GST calculated at
5%. Anne requested in writing that Liberty Promotions use the optional operating cost method if all conditions apply. She did not reimburse the company for any of the expenses associated with the automobile.
Calculate Anne's annual automobile taxable benefit.


Question 5

Ronda earns $12.50 per hour and worked 40 hours this week. Calculate her Canada Pension Plan (CPP) contribution for this weekly pay period.


Solutions:

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

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