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National Payroll Institute PF1

PF1

Exam Code: PF1

Exam Name: Payroll Fundamentals 1Exam

Updated: Jul 24, 2026

Q&A Number: 75 Q&As

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National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Topic 2: Termination of Employment- Termination processing
  • 1. Termination pay calculations
  • 2. Severance payments
Topic 3: Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Topic 4: Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Topic 5: Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
Topic 6: Year-End Processing- Federal and provincial year-end reporting
  • 1. T4 and RL-1 preparation
  • 2. Year-end reconciliations
Topic 7: Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Topic 8: Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
Topic 9: Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Topic 10: Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Benefit taxation
  • 2. Allowances and reimbursements
Topic 11: New Employee Information- Employee setup and documentation
  • 1. Federal and provincial tax forms
  • 2. Payroll records management
Topic 12: Record of Employment- ROE processing
  • 1. Electronic filing
  • 2. ROE completion requirements
Topic 13: Non-Regular Payments- Special payroll payments
  • 1. Vacation pay calculations
  • 2. Bonus payments

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Charlene receives $50.00 each pay for her meals. This is an example of:

A) An allowance
B) A reimbursement
C) None of the above
D) A benefit


2. Which of the following company-compulsory deductions would reduce the employee's gross taxable income for purposes of withholding income taxes?

A) Employee contributions to a group Registered Retirement Savings Plan (RRSP)
B) Employee payment of a portion of group benefit plan premiums
C) All of the above
D) Employee payment of provincial health care plan premiums


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

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


4. The employee-employer relationship is deemed to be severed when:

A) The employee continues to accrue benefits in the organization's pension plan
B) The employee retains the right to be recalled to work
C) There is no expectation of work to be performed by the employee
D) None of the above


5. The source deductions form completed by all new employees in Quebec is called:

A) TP-1015.3-V
B) T2222
C) TD1-AB
D) T1213


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: C
Question # 5
Answer: A

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