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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Paul Westin works for an Alberta organization and receives a regular salary of $1,800.00 semi-monthly. He will be receiving a payout of accrued vacation with no time taken of $1,400.00 on a separate cheque. He has federal and provincial TD1s on file with claim code 1. Calculate the income taxes to be withheld on his vacation pay.

2. The amount of notice the employer must give an employee depends on:

A) The industry in which the employer operates
B) The employee's length of service and the jurisdiction in which they work
C) The employee's length of service and the jurisdiction in which they live
D) The size of the employer's payroll

3. Evangeline earns $1,075.00 weekly plus $154.00 in overtime. Calculate Evangeline's Quebec Parental Insurance Plan (QPIP) premium.

4. Expense reimbursements are:

A) Dollar amounts paid to employees to cover expenses that they incur while performing their job
B) Dollar amounts the employer pays for the work an employee performs
C) Values attributed to something the employer has either provided to an employee or paid for on an employee's behalf
D) Dollar amounts paid to employees for the use of their personal property for business purposes

5. Paula is granted a pay increase. The paperwork informing the payroll department of the pay increase is two pay periods late. What method would be used to calculate income taxes on the separate retroactive payment?

A) Bonus tax method
B) Tax table method
C) Retroactive tax method
D) Lump-sum tax method

Solutions: