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National Payroll Institute PF1 : Payroll Fundamentals 1Exam

PF1 real exams

Exam Code: PF1

Exam Name: Payroll Fundamentals 1Exam

Updated: Oct 15, 2026

Q & A: 75 Questions and Answers

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PF1 exam dumps

National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Payroll Accounting- Payroll accounting practices
  • 1. Payroll reconciliations
  • 2. Journal entries
Year-End Processing- Federal and provincial year-end reporting
  • 1. Year-end reconciliations
  • 2. T4 and RL-1 preparation
Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Benefit taxation
  • 2. Allowances and reimbursements
Non-Regular Payments- Special payroll payments
  • 1. Bonus payments
  • 2. Vacation pay calculations
Federal Remittances- Government remittance obligations
  • 1. Income tax remittances
  • 2. CPP and EI remittances
Termination of Employment- Termination processing
  • 1. Termination pay calculations
  • 2. Severance payments
Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
New Employee Information- Employee setup and documentation
  • 1. Federal and provincial tax forms
  • 2. Payroll records management
Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Commission Payments- Commission payroll processing
  • 1. Tax treatment of commissions
  • 2. Commission earnings calculations

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question #1
In Block 12 of the Record of Employment, the final pay period ending date for employees who are paid solely by commission or are paid salary plus irregularly paid commission will be:

A. The Saturday of the week in which the last day for which paid, reported in Block 11, occurs
B. The Sunday of the week in which the last day for which paid, reported in Block 11, occurs
C. The last date for which paid
D. The last date of the pay period


Question #2
Which of the following company-compulsory deductions would reduce the employee's gross taxable income for purposes of withholding income taxes?

A. All of the above
B. Employee payment of a portion of group benefit plan premiums
C. Employee contributions to a group Registered Retirement Savings Plan (RRSP)
D. Employee payment of provincial health care plan premiums


Question #3
Which pension plan requires the services of an actuary to study and forecast future needs of the plan to ensure the plan remains sufficiently funded to provide employees with their retirement benefits?

A. Defined benefit pension plan
B. Defined contribution pension plan
C. All of the above
D. Registered Retirement Savings Plan


Question #4
Which of the following deductions would be the last payroll withholding in order of priority?

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


Question #5
Feraz Dalia is due $12,523.00 in legislated wages in lieu of notice that will be added to his last weekly pay of
$1,080.00. Calculate Feraz's Employment Insurance (EI) premium, if his employer is situated in Saskatchewan and the yearly maximum contribution will not be exceeded.


Solutions:

Question #1
Correct Answer: A
Question #2
Correct Answer: C
Question #3
Correct Answer: A
Question #4
Correct Answer: D
Question #5
Correct Answer: Only visible for members

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