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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. A retiring allowance includes:

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

2. A premium payment for overtime hours worked or a rate per piece of goods produced is an example of:

A) Benefits
B) Earnings
C) Expense reimbursements
D) Allowances

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

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

4. By the authority of which Act can the Canada Revenue Agency garnish the wages of an employee who has failed to pay Employment Insurance premiums, Canada Pension Plan contributions, or income tax deductions?

A) The Creditors' Relief Act
B) The Income Tax Act
C) The Canada Pension Plan Act
D) The Employment Insurance Act

5. Expense reimbursements are:

A) Dollar amounts paid to employees for the use of their personal property for business purposes
B) Dollar amounts the employer pays for the work an employee performs
C) Dollar amounts paid to employees to cover expenses that they incur while performing their job
D) Values attributed to something the employer has either provided to an employee or paid for on an employee's behalf

Solutions: