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Last Updated: Sep 10, 2026
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National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Record of Employment (ROE) | 20% | - ROE completion requirements
|
| Individual Pay Calculations | 40% | - Regular earnings
|
| Communication and Compliance | 10% | - Stakeholder communication
|
| Termination and Special Payments | 30% | - Termination payments
|
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
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 completed T1213
- B. A benefit enrollment form
- C. All of the above
- D. A clearance certificate
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Select the correct order of priority for withholding payroll deductions from an employee's earnings.
- A. Union deductions, statutory deductions, legal deductions, company-compulsory deductions, voluntary deductions
- B. Statutory deductions, union deductions, legal deductions, company-compulsory deductions, voluntary deductions
- C. Statutory deductions, legal deductions, union deductions, company-compulsory deductions, voluntary deductions
- D. Company-compulsory deductions, union deductions, statutory deductions, legal deductions, voluntary deductions
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Rosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2015 and she was paid a $62,500.00 retiring allowance. Rosa joined her company's pension plan in 1986 and was fully vested on termination of employment. Calculate the non-eligible portion of the retiring allowance.
$32,000.00 non-eligible portion
Explanation:
CRA requires separating a retiring allowance into an eligible and non-eligible portion. The eligible portion is the maximum that can be transferred to an RRSP/RPP under the special rules (without using regular RRSP room). The formula is: $2,000 for each year (or part-year) of service before 1996, plus an additional $1,500 for each year (or part-year) before 1989 in which the employee had no employer pension/DPSP benefit vested at the time of payment (or previously paid).
Rosa worked from 1983 to 1995 (inclusive) for pre-1996 service: 13 years × $2,000 = $26,000.
For the extra pre-1989 amount: she joined the pension plan in 1986 and was fully vested when paid the retiring allowance in 2015, so 1986-1988 do not qualify for the extra $1,500. However, 1983-1985 were years before 1989 when she had no vested employer pension benefit, so 3 years × $1,500 = $4,500.
Eligible portion = $26,000 + $4,500 = $30,500.
Non-eligible portion = $62,500 # $30,500 = $32,000.
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, vehicle options, accessories, sales tax and additions that add to depreciation value
- D. The cost of the vehicle excluding sales tax
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Vacation pay on termination would be recorded in which Block(s) on the Record of Employment?
- A. It would not be recorded
- B. Blocks 15B, 15C P.P. 1 and 17A
- C. Block 17A only
- D. Block 15B only
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