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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. A death benefit is a:

A) Payment made by an employer of any outstanding earnings to an employee on their death
B) Life insurance payment made by an insurance company on the death of an employee
C) Discretionary payment made by an employer on the death of an employee, in recognition of the employee's service
D) Payment made by an employer of vacation pay owing to an employee on their death

2. What information is required to calculate thestandby charge, thereduced standby charge, and theoperating cost benefitfor a company-owned automobile?

A) Capital cost, availability, business kilometres
B) Capital cost, total kilometres, personal kilometres, and business kilometres
C) Capital cost, sales tax, availability, total kilometres, business kilometres, and personal kilometres
D) Capital cost, sales taxes, availability

3. 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) A completed T1213
B) Consent to withhold statutory deductions
C) A clearance certificate
D) A confidentiality agreement

4. A 900-series Social Insurance Number is issued to:

A) Landed immigrants working outside of Canada
B) Individuals who are neither Canadian citizens nor permanent residents
C) Canadian residents working outside of Canada
D) Canadian residents with an expired Social Insurance Number

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

Solutions: