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National Payroll Institute PF1 Exam Overview:
| Certification Vendor: | National Payroll Institute |
|---|---|
| Exam Name: | Payroll Fundamentals 1 |
| Exam Number: | PF1 |
| Certificate Validity Period: | 3 years |
| Exam Duration: | 120 minutes |
| Exam Format: | Multiple-choice, Case studies, Fill-in-the-blank |
| Available Languages: | English |
| Exam Price: | $499.00 – $649.00 CAD |
| Related Certifications: | Payroll Compliance Legislation Payroll Fundamentals 2 |
| Real Exam Qty: | 73–75 |
| Passing Score: | 65% |
| Recommended Training: | Official PF1 Online Course |
| Exam Registration: | National Payroll Institute Registration |
| Sample Questions: | National Payroll Institute PF1 Sample Questions |
| Exam Way: | Remote online proctored exam; available via online, classroom, or challenge options |
| Pre Condition: | Successful completion of Payroll Compliance Legislation (PCL) course/exam |
| Official Syllabus URL: | https://payroll.ca/certification/payroll-fundamentals-1 |
National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Individual Pay Calculations | 40% | - Regular earnings
|
| Topic 2: Termination and Special Payments | 30% | - Leaves and absences
|
| Topic 3: Record of Employment (ROE) | 20% | - Submission and deadlines
|
| Topic 4: Communication and Compliance | 10% | - Stakeholder communication
|
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
Ursula is 17 years old, works in Quebec and earns $750.00 weekly. Ursula pays weekly union dues of $18.00 along with a special weekly union assessment of $10.00 for construction of a new union hall for its members.
Ursula also has registered pension plan (RPP) contributions of $20.00 deducted from each pay. Calculate Ursula's net federal taxable income.
Correct Answer:
$712.00
Explanation:
For payroll income tax purposes, net taxable income starts with the employee's gross taxable income and then subtracts only those deductions that are deductible for income tax and can be recognized at source. CRA payroll guidance shows this approach by subtracting items such as RPP contributions and union dues when determining net taxable income for calculating income tax deductions.
Gross taxable income (weekly): $750.00.
RPP contributions are deductible (the amounts reported from box 20 of the T4 are generally deductible).
Regular union dues are deductible; however, the CRA states that deductible annual union/professional dues do not include special assessments or charges for anything other than ordinary operating costs. A levy specifically for constructing a new union hall is a special assessment, so it is not deductible as union dues.
So the deductions that reduce federal taxable income here are: $18.00 (union dues) + $20.00 (RPP) = $38.00.
Net federal taxable income = $750.00 # $38.00 = $712.00.
The deduction for living in a prescribed zone can be claimed by residents of which jurisdictions?
- A. New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island
- B. Alberta, Saskatchewan and Manitoba
- C. All Canadian provinces and territories
- D. Northwest Territories, Nunavut and Yukon
Correct Answer: C 🗳️
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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. Last27pay periods (or less if period of employment is shorter)
- C. Last13pay periods (or less if period of employment is shorter)
- D. Last7pay periods (or less if period of employment is shorter)
Correct Answer: B 🗳️
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Which pension plan requires the services of an actuary to study and forecast future needs of the plan to ensure the plan remains sufficiently funded to provide employees with their retirement benefits?
- A. All of the above
- B. Defined contribution pension plan
- C. Registered Retirement Savings Plan
- D. Defined benefit pension plan
Correct Answer: D 🗳️
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Which of the following types of payments made by a private organization would not be subject to all statutory deductions?
- A. Performance bonus
- B. Retroactive adjustment
- C. Directors' fees
- D. Vacation pay when no time was taken
Correct Answer: C 🗳️
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