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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. 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.

2. Which of the following deductions would be the last payroll withholding in order of priority?

A) The organization's pension plan
B) Voluntary insurance coverage
C) Third Party Demand
D) Requirement to Pay

3. A Third Party Demand is issued by the Canada Revenue Agency for:

A) Outstanding child support and/or maintenance payments
B) A debt owed to a third party creditor
C) Unpaid income taxes or unpaid statutory deductions
D) Overpaid Employment Insurance benefits

4. An interruption of earnings occurs when there is a period of how many days with no insurable earnings?

A) Seven calendar days
B) Five business days
C) Seven business days
D) Five calendar days

5. Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
$10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

A) $10,000.00
B) None of the retiring allowance is eligible
C) $2,000.00
D) $7,500.00

Solutions: