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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

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

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

3. Phan was employed fromMarch 1, 1992throughJanuary 10, 2007. He was not a member of the organization' s pension plan. Calculate the number of years eligible for the$1,500.00portion of a retiring allowance.

A) 1
B) 2
C) 0
D) 5

4. Which of the following situations would not require an employer to issue a Record of Employment?

A) A business is sold and the new owner retains all employees and payroll records with no loss of earnings
B) Full-time employee went on 6 weeks' unpaid leave of absence
C) Employee's earnings fall to 40% of their normal weekly earnings
D) Employee is laid off and will not be recalled

5. An employee who lives in Ontario and reports to work at a permanent establishment of the employer in Quebec will have income tax deducted based on which province?

A) Ontario & Quebec
B) Employee's choice
C) Quebec
D) Ontario

Solutions: