Try National Payroll Institute : PF1 valid & accurate questions and answers

Updated: Jul 30, 2026

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National Payroll Institute PF1 Exam Overview:

Certification Vendor:National Payroll Institute
Exam Name:Payroll Fundamentals 1
Exam Number:PF1
Available Languages:English, French
Exam Duration:180-240
Exam Price:USD 550-600
Exam Format:Assignments, Discussion Activities, Midterm Exam, Final Exam, Remote Proctored Online Exam
Passing Score:65%
Related Certifications:Payroll Compliance Professional (PCP)
Sample Questions:National Payroll Institute PF1 Sample Questions
Exam Way:Online asynchronous course with remote proctored midterm and final exams.
Pre Condition:Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1.
Official Syllabus URL:https://payroll.ca/certification/payroll-fundamentals-1

National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
Topic 2: Non-Regular Payments- Special payroll payments
  • 1. Bonus payments
  • 2. Vacation pay calculations
Topic 3: Record of Employment- ROE processing
  • 1. ROE completion requirements
  • 2. Electronic filing
Topic 4: Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Topic 5: Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Topic 6: New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms
Topic 7: Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
Topic 8: Payroll Accounting- Payroll accounting practices
  • 1. Payroll reconciliations
  • 2. Journal entries
Topic 9: Year-End Processing- Federal and provincial year-end reporting
  • 1. Year-end reconciliations
  • 2. T4 and RL-1 preparation
Topic 10: Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Topic 11: Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Topic 12: Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Overtime calculations
  • 2. Salary and hourly wage calculations
Topic 13: Termination of Employment- Termination processing
  • 1. Severance payments
  • 2. Termination pay calculations

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. An employee-employer relationship is deemed to exist when:

A) The employee refuses the right to be recalled to work
B) There is no expectation of work to be performed by the employee
C) The employee continues to accrue benefits in the organization's pension plan
D) The employee continues to participate in some of the benefit plans that were available while they were employed


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.


3. An interruption of earnings occurs when there is a period of how many days with no insurable earnings?

A) Seven calendar days
B) Five business days
C) Five calendar days
D) Seven business days


4. Bonus and incentive pays are subject to which statutory deductions?

A) Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
B) Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes
C) Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
/Nunavut payroll taxes
D) Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes


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 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


Solutions:

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

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