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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
1. The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?
A) All Canadian provinces and territories
B) Alberta, Saskatchewan and Manitoba
C) New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
D) Northwest Territories, Nunavut and Yukon
2. An organization pays the premiums for a sickness or accident plan for their president only. This would be considered:
A) A non-cash taxable benefit
B) None of the above
C) A taxable allowance
D) A cash taxable benefit
3. Select the correct order of priority for withholding payroll deductions from an employee's earnings.
A) Union deductions, statutory deductions, legal deductions, company-compulsory deductions, voluntary deductions
B) Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions
C) Company-compulsory deductions, union deductions, statutory deductions, legal deductions, voluntary deductions
D) Statutory deductions, union deductions, legal deductions, company-compulsory deductions, voluntary deductions
4. Expense reimbursements are:
A) Dollar amounts paid to employees for the use of their personal property for business purposes
B) Values attributed to something the employer has either provided to an employee or paid for on an employee's behalf
C) Dollar amounts the employer pays for the work an employee performs
D) Dollar amounts paid to employees to cover expenses that they incur while performing their job
5. 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) Retroactive adjustment
D) Performance bonus
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: B |


