National Payroll Institute PF1 real exam prep : Payroll Fundamentals 1Exam

  • Exam Code: PF1
  • Exam Name: Payroll Fundamentals 1Exam
  • Updated: Aug 26, 2026
  • Q&As: 75 Questions and Answers

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National Payroll Institute PF1 Exam Syllabus Topics:

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

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. 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) All of the above
B) A completed T1213
C) A benefit enrollment form
D) A clearance certificate


2. The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:

A) TP-1015.R.13.1-V
B) TD1
C) TD1X
D) T777


3. Michael is an employee in Alberta who is paid bi-weekly and earns $1,600.00 per pay period. He has a taxable meal allowance of $30.00 per pay period. His federal and provincial TD1s on file show a claim code
2. Michael already reached the annual maximum first and second Canada Pension Plan (CPP) contributions before this pay. Calculate his total federal and provincial income taxes.


4. Phan was employed fromMarch 1, 1992throughJanuary 10, 2007. He was not a member of the organization' s pension plan. Calculate the number of years eligible for the$1,500.00portion of a retiring allowance.

A) 2
B) 5
C) 0
D) 1


5. 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) All of the above
B) Defined contribution pension plan
C) Defined benefit pension plan
D) Registered Retirement Savings Plan


Solutions:

Question # 1
Answer: C
Question # 2
Answer: C
Question # 3
Answer: Only visible for members
Question # 4
Answer: C
Question # 5
Answer: C

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