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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. A retiring allowance includes:

A) Bonus or incentive pay
B) Payments in recognition of long service
C) Vacation pay
D) Accumulated overtime

2. Steve is physically disabled and his employer pays for his parking spot. This is considered:

A) A cash taxable benefit
B) A taxable allowance
C) None of the above
D) A non-cash taxable benefit

3. The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?

A) Northwest Territories, Nunavut and Yukon
B) Alberta, Saskatchewan and Manitoba
C) New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
D) All Canadian provinces and territories

4. Tanya submitted a letter of resignation to her employer on April 2 of the current year advising that she would be resigning her position effective April 27 for the pay period ending April 28. What date will appear in Block
11 of Tanya's Record of Employment?

A) None of the above
B) April 27 of the current year
C) April 2 of the current year
D) April 30 of the current year

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

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

Solutions: