The best content

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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

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

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

3. By the authority of which Act can the Canada Revenue Agency garnish the wages of an employee who has failed to pay Employment Insurance premiums, Canada Pension Plan contributions, or income tax deductions?

A) The Income Tax Act
B) The Creditors' Relief Act
C) The Employment Insurance Act
D) The Canada Pension Plan Act

4. In which province or territory is the employer-paid premium for private health insurance coverage that includes dental and prescription coverage considered to be a non-cash taxable benefit?

A) Quebec
B) Ontario
C) Yukon
D) British Columbia

5. A death benefit is a:

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

Solutions: