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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. 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 wages at the point of receiving the retiring allowance
C) The employee's age plus the employee's average earnings from the past five years with the employer and its associated companies
D) The employee's average earnings from the past five years with the employer and its associated companies

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

3. Michael is an employee in Alberta who is paid bi-weekly and earns $1,600.00 per pay period. He has a taxable meal allowance of $30.00 per pay period. His federal and provincial TD1s on file show a claim code
2. Michael already reached the annual maximum first and second Canada Pension Plan (CPP) contributions before this pay. Calculate his total federal and provincial income taxes.

4. Tanya submitted a letter of resignation to her employer on April 2 of the current year advising that she would be resigning her position effective April 27 for the pay period ending April 28. What date will appear in Block
11 of Tanya's Record of Employment?

A) April 27 of the current year
B) None of the above
C) April 2 of the current year
D) April 30 of the current year

5. Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

A) A cash taxable benefit
B) A taxable allowance
C) None of the above
D) A non-taxable allowance

Solutions: