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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Dollar amounts that are paid to an employee to cover expenses that they incurred while performing their job, but are not considered in the calculation of an employee's earnings are:

A) Benefits
B) Earnings
C) Expense reimbursements
D) Allowances

2. Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

A) None of the above
B) A cash taxable benefit
C) A taxable allowance
D) A non-taxable allowance

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

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

4. Which statutory deductions is salary continuance subject to?

A) All deductions
B) All deductions except Employment Insurance premiums
C) All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums
D) All deductions except Quebec Parental Insurance Plan premiums

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

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

Solutions: