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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. A death benefit is a:

A) Payment made by an employer of any outstanding earnings to an employee on their death
B) Payment made by an employer of vacation pay owing to an employee on their death
C) Discretionary payment made by an employer on the death of an employee, in recognition of the employee's service
D) Life insurance payment made by an insurance company on the death of an employee

2. 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.

3. The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:

A) TD1X
B) TP-1015.R.13.1-V
C) T777
D) TD1

4. What is the portion of a retiring allowance eligible to be transferred into a Registered Retirement Savings Plan (RRSP) or a registered pension plan (RPP) tax free based on?

A) The employee's number of years of service with the employer and its associated companies prior to
1996
B) The employee's average earnings from the past five years with the employer and its associated companies
C) The employee's wages at the point of receiving the retiring allowance
D) The employee's age plus the employee's average earnings from the past five years with the employer and its associated companies

5. The authorization for hiring form should contain a checklist to ensure the organization obtains all required information. What is an example of an item that could be on that checklist?

A) A confidentiality agreement
B) Consent to withhold statutory deductions
C) A completed T1213
D) A clearance certificate

Solutions: