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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Which of the following deductions would be the last payroll withholding in order of priority?

A) Voluntary insurance coverage
B) The organization's pension plan
C) Third Party Demand
D) Requirement to Pay

2. Vacation pay on termination would be recorded in which Block(s) on the Record of Employment?

A) It would not be recorded
B) Block 15B only
C) Blocks 15B, 15C P.P. 1 and 17A
D) Block 17A only

3. 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.

4. A Third Party Demand is issued by the Canada Revenue Agency for:

A) Unpaid income taxes or unpaid statutory deductions
B) Overpaid Employment Insurance benefits
C) A debt owed to a third party creditor
D) Outstanding child support and/or maintenance payments

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

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

Solutions: