National Payroll Institute PF1 : Payroll Fundamentals 1Exam

PF1 real exams

Exam Code: PF1

Exam Name: Payroll Fundamentals 1Exam

Updated: Sep 15, 2026

Q & A: 75 Questions and Answers

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionWeightObjectives
Individual Pay Calculations40%- Regular earnings
  • 1. Hourly, salary, commission calculations
    • 2. Pay period types and frequency
      - Non-regular earnings
      • 1. Overtime, bonuses, retroactive pay
        • 2. Allowances, taxable benefits
          Communication and Compliance10%- Accuracy and documentation
          • 1. Record keeping and audit trails
            - Stakeholder communication
            • 1. Employee, government, third-party requirements
              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
                      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

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            Question #1

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

                            • A. Vacation pay when no time was taken
                            • B. Directors' fees
                            • C. Performance bonus
                            • D. Retroactive adjustment
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

                            Explanation: Only visible for DumpsReview members. You can sign-up / login (it's free).

                            Question #2

                            Select the correct order of priority for withholding payroll deductions from an employee's earnings.

                            • A. Statutory deductions, union deductions, legal deductions, company-compulsory deductions, voluntary deductions
                            • B. Company-compulsory deductions, union deductions, statutory deductions, legal deductions, voluntary deductions
                            • C. Union deductions, statutory deductions, legal deductions, company-compulsory deductions, voluntary deductions
                            • D. Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions
                            Reveal Solution  Discussion  0

                            Correct Answer: D  🗳️

                            Explanation: Only visible for DumpsReview members. You can sign-up / login (it's free).

                            Question #3

                            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 clearance certificate
                            • B. All of the above
                            • C. A benefit enrollment form
                            • D. A completed T1213
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

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                            Question #4

                            When is the government-prescribed rate of interest set?

                            • A. The first of each month
                            • B. Each calendar quarter
                            • C. Semi-annually
                            • D. Annually
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

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                            Question #5

                            Elodie is paid her commissions together with her bi-weekly salary of $1,000.00. This pay period her commissions are $4,300.00. Calculate her Quebec Pension Plan (QPP) contribution for this pay period.

                            Reveal Solution  Discussion  0

                            Correct Answer:

                            $325.42
                            Explanation:
                            Because Elodie is subject to QPP, her pensionable earnings for the pay period include both salary and commissions (both are pensionable employment earnings, assuming no exemptions apply). First, determine total pensionable earnings for the bi-weekly pay:
                            $1,000.00 + $4,300.00 = $5,300.00.
                            For 2026, Revenu Quebec shows the QPP basic exemption is $3,500 annually and the (employee) QPP contribution rate on earnings up to the maximum pensionable earnings is 6.30%.
                            Payroll applies the exemption per pay period. For bi-weekly pay (26 pay periods):
                            $3,500 ÷ 26 = $134.62 (rounded to cents).
                            Pensionable earnings subject to QPP this pay:
                            $5,300.00 # $134.62 = $5,165.38.
                            QPP contribution:
                            $5,165.38 × 6.30% = $5,165.38 × 0.063 = $325.41894, which rounds to $325.42.

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