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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:

A) An expense reimbursement
B) A benefit
C) An earning
D) An allowance

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

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

4. Dollar values attributed to something the employer has either provided to an employee or paid for on an employee's behalf are:

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

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

Solutions: