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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Expense reimbursements are:

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

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

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

3. When would a Record of Employment be issued for an employee paid mainly by commission?

A) When the employment relationship has been severed
B) When the employee has had seven consecutive calendar days without both work and insurable earnings
C) When the employee has not earned any commission after six months
D) An employee mainly paid by commission is not entitled to receive a Record of Employment

4. The capital cost of an employer-owned vehicle includes:

A) The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment
B) The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
C) The cost of the vehicle excluding sales tax
D) The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value

5. How many pay periods will be used to calculate insurable earnings inBlock 15Bon the Record of Employment if the employee is paidweekly?

A) Last14pay periods (or less if period of employment is shorter)
B) Last13pay periods (or less if period of employment is shorter)
C) Last7pay periods (or less if period of employment is shorter)
D) Last27pay periods (or less if period of employment is shorter)

Solutions: