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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

A) Block 17C only
B) Blocks 15B and 17C
C) Block 15C only
D) Block 15B only

2. Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

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

3. Ursula is 17 years old, works in Quebec and earns $750.00 weekly. Ursula pays weekly union dues of $18.00 along with a special weekly union assessment of $10.00 for construction of a new union hall for its members.
Ursula also has registered pension plan (RPP) contributions of $20.00 deducted from each pay. Calculate Ursula's net federal taxable income.

4. Dollar values attributed to something the employer has either provided to an employee or paid for on an employee's behalf are:

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

5. Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
$10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

A) $2,000.00
B) $10,000.00
C) None of the retiring allowance is eligible
D) $7,500.00

Solutions: