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National Payroll Institute PF1 Exam : Payroll Fundamentals 1Exam

PF1 actual test
  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Sep 07, 2026
  • Q & A: 75 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

About National Payroll Institute PF1 Exam

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Communication and Compliance10%- Accuracy and documentation
  • 1. Record keeping and audit trails
    - Stakeholder communication
    • 1. Employee, government, third-party requirements
      Topic 2: Individual Pay Calculations40%- Non-regular earnings
      • 1. Overtime, bonuses, retroactive pay
        • 2. Allowances, taxable benefits
          - Regular earnings
          • 1. Pay period types and frequency
            • 2. Hourly, salary, commission calculations
              Topic 3: Record of Employment (ROE)20%- ROE completion requirements
              • 1. Block-by-block reporting rules
                • 2. Insurable/pensionable earnings reporting
                  - Submission and deadlines
                  • 1. Electronic vs paper filing
                    Topic 4: Termination and Special Payments30%- Leaves and absences
                    • 1. Vacation pay, statutory holidays
                      • 2. Sick leave, maternity/parental leave payments
                        - Termination payments
                        • 1. Wages in lieu of notice, severance pay
                          • 2. Retiring allowances, death benefits

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            Question #1

                            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 contribution pension plan
                            • B. All of the above
                            • C. Registered Retirement Savings Plan
                            • D. Defined benefit pension plan
                            Answer: D
                            Question #2

                            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 completed T1213
                            • B. A clearance certificate
                            • C. Consent to withhold statutory deductions
                            • D. A confidentiality agreement
                            Answer: D

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                            Question #3

                            The capital cost of an employer-owned vehicle includes:

                            • A. The cost of the vehicle excluding sales tax
                            • B. The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
                            • C. The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
                            • D. The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment
                            Answer: C

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                            Question #4

                            Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

                            • A. Block 15B only
                            • B. Block 17C only
                            • C. Block 15C only
                            • D. Blocks 15B and 17C
                            Answer: B

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                            Question #5

                            Evangeline earns $1,075.00 weekly plus $154.00 in overtime. Calculate Evangeline's Quebec Parental Insurance Plan (QPIP) premium.

                            Answer:

                            $5.28 (employee QPIP premium for the week)
                            Explanation:
                            QPIP premiums are calculated on an employee's insurable earnings in Quebec (up to the annual maximum insurable earnings). For 2026, Revenu Quebec shows the employee QPIP premium rate is 0.430% (0.00430) and the maximum insurable earnings are $103,000.
                            Step 1: Determine Evangeline's weekly insurable earnings (assuming all earnings are QPIP-insurable and the annual maximum will not be exceeded, as the question implies):
                            Regular earnings $1,075.00 + overtime $154.00 = $1,229.00.
                            Step 2: Apply the employee QPIP rate:
                            $1,229.00 × 0.430% = $1,229.00 × 0.00430 = $5.2847.
                            Step 3: Round to cents (standard payroll practice): $5.28.
                            Payroll would deduct $5.28 from Evangeline's pay for QPIP for that week and remit it along with other source deductions as required. The deduction continues until the employee reaches the annual QPIP maximum premium (based on the annual insurable earnings limit).

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