National Payroll Institute PF1 : Payroll Fundamentals 1Exam

  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Sep 24, 2026   Q&As: 75 Questions and Answers

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National Payroll Institute PF1 Exam Syllabus Topics:
SectionWeightObjectives
Record of Employment (ROE)20%- ROE completion requirements
  • 1. Insurable/pensionable earnings reporting
    • 2. Block-by-block reporting rules
      - Submission and deadlines
      • 1. Electronic vs paper filing
        Communication and Compliance10%- Stakeholder communication
        • 1. Employee, government, third-party requirements
          - Accuracy and documentation
          • 1. Record keeping and audit trails
            Individual Pay Calculations40%- Regular earnings
            • 1. Hourly, salary, commission calculations
              • 2. Pay period types and frequency
                - Non-regular earnings
                • 1. Overtime, bonuses, retroactive pay
                  • 2. Allowances, taxable benefits
                    Termination and Special Payments30%- Termination payments
                    • 1. Retiring allowances, death benefits
                      • 2. Wages in lieu of notice, severance pay
                        - Leaves and absences
                        • 1. Vacation pay, statutory holidays
                          • 2. Sick leave, maternity/parental leave payments
                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
                            Question #1

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

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            $25.75
                            Explanation:
                            First calculate Ronda's pensionable earnings for the week. Her gross pay is:
                            $12.50 × 40 = $500.00.
                            CPP is calculated on pensionable earnings after subtracting the basic exemption (the Year's Basic Exemption, YBE), prorated to the pay period. The CRA confirms the YBE is $3,500 and the employee CPP contribution rate for 2026 is 5.95% for base CPP.
                            Weekly exemption = $3,500 ÷ 52 = $67.31 (rounded to cents).
                            Pensionable earnings subject to CPP this week = $500.00 # $67.31 = $432.69.
                            CPP contribution = $432.69 × 5.95% = $432.69 × 0.0595 = $25.745..., which rounds to $25.75.
                            This deduction continues each pay until the employee reaches the annual CPP maximum contribution for the year (at which point CPP stops for the remainder of the year).

                            Question #2

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

                            • A. Blocks 15B, 15C P.P. 1 and 17A
                            • B. Block 17A only
                            • C. Block 15B only
                            • D. It would not be recorded
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

                            Explanation: Only visible for DumpsTests members. You can sign-up / login (it's free).

                            Question #3

                            Anthony earns $750.00 per week. He has a cash taxable benefit of $25.00 per week. Anthony is exempt from CPP contributions. Calculate the net taxable income for the week.

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            $775.00
                            Explanation:
                            "Net taxable income" for payroll withholding purposes is the amount of income on which income tax is calculated for the pay period. It generally starts with the employee's gross taxable earnings for the period (regular wages plus any taxable benefits/allowances that must be included in income), then subtracts only those deductions that are deductible for tax at source (for example, certain registered pension plan contributions, union dues, etc., if applicable). A cash taxable benefit is treated like additional remuneration and is included in taxable income. (canada.ca) Here, Anthony's weekly taxable earnings are:
                            $750.00 wages + $25.00 cash taxable benefit = $775.00.
                            Being exempt from CPP contributions affects whether CPP is deducted, but CPP is not a "net taxable income" subtraction in this question (and in any case, no CPP is being deducted). The question also does not mention any other tax-deductible payroll deductions (like RPP contributions), so there is nothing to subtract from taxable earnings.
                            Therefore, Anthony's net taxable income for the week is $775.00.

                            Question #4

                            National Hardware, an Ontario organization, will be terminating the employment of Emilie St. Germain on October 28, 2019, the last day of the pay period. Emilie started with National Hardware on September 19,
                            2007. Complete the paper Record of Employment (ROE) for Emilie based on the information provided in the following chart.
                            Note: Vacationable earnings already include the pay in lieu of notice.
                            All dates must be entered in the format DDMMYYYY.

                            Paper ROE (Form Reference)
                            Complete the following paper ROE blocks for Emilie:
                            Block 6 - Pay period type
                            Block 8 - Social Insurance Number
                            Block 10 - First day worked
                            Block 11 - Last day for which paid
                            Block 12 - Final pay period ending date
                            Block 15A - Total insurable hours
                            Block 15B - Total insurable earnings
                            Block 17A - Vacation pay
                            Block 17C - Other monies (Pay in lieu of notice)
                            Block 17C - Other monies (Severance)

                            Step 1 - Complete Block 6
                            Enter the pay period type for Emilie.
                            Step 2 - Complete Block 8
                            Enter Emilie's Social Insurance Number.
                            Step 3 - Complete Block 10
                            Enter Emilie's first day worked in DDMMYYYY format.
                            Step 4 - Complete Block 11
                            Enter Emilie's last day for which paid in DDMMYYYY format.
                            Step 5 - Complete Block 12
                            Enter the final pay period ending date in DDMMYYYY format.
                            Step 6 - Complete Block 15A
                            Calculate and enter total insurable hours.
                            Given:
                            Hours worked per pay period = 80.00
                            Bi-weekly ROE pay period chart captures 27 pay periods
                            Step 7 - Complete Block 15B
                            Calculate and enter total insurable earnings.
                            Given:
                            Pay period earnings = $1,884.62
                            Bi-weekly ROE pay period chart captures 27 pay periods
                            Step 8 - Complete Block 17A
                            Calculate and enter vacation pay.
                            Given:
                            Vacation pay rate = 6%
                            Vacationable earnings = $52,050.00
                            (already includes pay in lieu of notice)
                            Step 9 - Complete Block 17C
                            Enter the correct amount in 17C for "Other monies" specified as Pay in lieu of notice.
                            Given:
                            Pay in lieu of notice = 8 weeks
                            Use weekly earnings derived from the bi-weekly pay period earnings.
                            Step 10 - Complete Block 17C
                            Enter the correct amount in 17C for "Other monies" specified as Severance.
                            Given:
                            Severance = 10 weeks
                            Use the same weekly earnings used in Step 9.

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            See the Below Explanation for complete Solution.
                            Explanation:
                            Step 1 - Block 6
                            Bi-weekly
                            Step 2 - Block 8
                            435837159
                            Step 3 - Block 10
                            September 19, 2007 # 19092007
                            Step 4 - Block 11
                            October 28, 2019 # 28102019
                            Step 5 - Block 12
                            October 28, 2019 # 28102019
                            Step 6 - Block 15A (Total insurable hours)
                            80.00 × 27 = 2160
                            Block 15A = 2160
                            Step 7 - Block 15B (Total insurable earnings)
                            $1,884.62 × 27 = $50,884.74
                            Block 15B = 50,884.74
                            Step 8 - Block 17A (Vacation pay)
                            $52,050.00 × 6% = $3,123.00
                            Block 17A = 3,123.00
                            Step 9 - Block 17C (Pay in lieu of notice)
                            Weekly earnings = $1,884.62 ÷ 2 = $942.31
                            Pay in lieu = $942.31 × 8 = $7,538.48
                            Block 17C (Pay in lieu of notice) = 7,538.48
                            Step 10 - Block 17C (Severance)
                            Severance = $942.31 × 10 = $9,423.10
                            Block 17C (Severance) = 9,423.10

                            Question #5

                            The amount of notice the employer must give an employee depends on:

                            • A. The employee's length of service and the jurisdiction in which they live
                            • B. The employee's length of service and the jurisdiction in which they work
                            • C. The industry in which the employer operates
                            • D. The size of the employer's payroll
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

                            Explanation: Only visible for DumpsTests members. You can sign-up / login (it's free).

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