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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. 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) Lump-sum tax method
C) Tax table method
D) Retroactive tax method

2. Which of the following is not correct?

A) Block 15B is not completed when insurable earnings are reported in Block 15C
B) Bonus payments reported in Block 17C are also reported in Block 15B
C) Vacation pay reported in Block 17A is reported in Block 15B
D) Severance payments and retiring allowances are not reported in Block 15B

3. The authorization for hiring form should contain a checklist to ensure the organization obtains all required information. What is an example of an item that could be on that checklist?

A) A clearance certificate
B) A completed T1213
C) A benefit enrollment form
D) All of the above

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

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

Solutions: