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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Bonus and incentive pays are subject to which statutory deductions?

A) Canada/Quebec Pension Plan contributions, Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
B) Employment Insurance and Quebec Parental Insurance Plan premiums and Northwest Territories
/Nunavut payroll taxes
C) Canada/Quebec Pension Plan contributions, Employment Insurance and Quebec Parental Insurance Plan premiums, income taxes and Northwest Territories/Nunavut payroll taxes
D) Canada/Quebec Pension Plan contributions, Employment Insurance premiums and income taxes

2. Which of the following types of payments made by a private organization would not be subject to all statutory deductions?

A) Retroactive adjustment
B) Performance bonus
C) Directors' fees
D) Vacation pay when no time was taken

3. Which of the following is not correct?

A) Bonus payments reported in Block 17C are also reported in Block 15B
B) Vacation pay reported in Block 17A is reported in Block 15B
C) Severance payments and retiring allowances are not reported in Block 15B
D) Block 15B is not completed when insurable earnings are reported in Block 15C

4. What is piecework?

A) Earnings which are based on the amount of time worked, usually at a rate per hour or per day
B) A fixed amount of earnings paid to an employee per pay period, regardless of the number of hours worked or the production they accomplished
C) All of the above
D) A rate of pay earned per unit of production, regardless of the length of time taken

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

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

Solutions: