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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. What is piecework?

A) A fixed amount of earnings paid to an employee per pay period, regardless of the number of hours worked or the production they accomplished
B) All of the above
C) Earnings which are based on the amount of time worked, usually at a rate per hour or per day
D) A rate of pay earned per unit of production, regardless of the length of time taken

2. Which of the following types of payments made by a private organization would not be subject to all statutory deductions?

A) Directors' fees
B) Vacation pay when no time was taken
C) Retroactive adjustment
D) Performance bonus

3. Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
$10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

A) $10,000.00
B) $2,000.00
C) None of the retiring allowance is eligible
D) $7,500.00

4. Charmaine's employment was terminated by her employer on April 13 of the current year. Charmaine had worked for her employer for 3 years and was paid 3 weeks of legislated wages in lieu of notice and two weeks' vacation pay with her final pay. What date should be recorded in Block 11 on Charmaine's Record of Employment?

A) May 4 of the current year
B) None of the above
C) Block 11 would not be completed
D) April 13 of the current year

5. 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) Northwest Territories, Nunavut and Yukon
D) All Canadian provinces and territories

Solutions: