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Updated: Oct 14, 2026

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National Payroll Institute PF1 Exam Overview:

Certification Vendor:National Payroll Institute
Exam Name:Payroll Fundamentals 1
Exam Number:PF1
Passing Score:65%
Exam Duration:180-240
Exam Price:USD 550-600
Related Certifications:Payroll Compliance Professional (PCP)
Exam Format:Discussion Activities, Remote Proctored Online Exam, Final Exam, Assignments, Midterm Exam
Available Languages:English, French
Sample Questions:National Payroll Institute PF1 Sample Questions
Exam Way:Online asynchronous course with remote proctored midterm and final exams.
Pre Condition:Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1.
Official Syllabus URL:https://payroll.ca/certification/payroll-fundamentals-1

National Payroll Institute PF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Salary and hourly wage calculations
  • 2. Overtime calculations
Topic 2: Record of Employment- ROE processing
  • 1. ROE completion requirements
  • 2. Electronic filing
Topic 3: Non-Regular Payments- Special payroll payments
  • 1. Vacation pay calculations
  • 2. Bonus payments
Topic 4: Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
Topic 5: Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Topic 6: Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
Topic 7: Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
Topic 8: Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
Topic 9: Termination of Employment- Termination processing
  • 1. Termination pay calculations
  • 2. Severance payments
Topic 10: Year-End Processing- Federal and provincial year-end reporting
  • 1. T4 and RL-1 preparation
  • 2. Year-end reconciliations
Topic 11: Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Topic 12: Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Topic 13: New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question #1

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. 0
  • C. 2
  • D. 5
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

Anthony earns $750.00 per week. He has a cash taxable benefit of $25.00 per week. Anthony is exempt from CPP contributions. Calculate the net taxable income for the week.

Reveal Solution  Discussion  0

Correct Answer:

$775.00
Explanation:
"Net taxable income" for payroll withholding purposes is the amount of income on which income tax is calculated for the pay period. It generally starts with the employee's gross taxable earnings for the period (regular wages plus any taxable benefits/allowances that must be included in income), then subtracts only those deductions that are deductible for tax at source (for example, certain registered pension plan contributions, union dues, etc., if applicable). A cash taxable benefit is treated like additional remuneration and is included in taxable income. (canada.ca) Here, Anthony's weekly taxable earnings are:
$750.00 wages + $25.00 cash taxable benefit = $775.00.
Being exempt from CPP contributions affects whether CPP is deducted, but CPP is not a "net taxable income" subtraction in this question (and in any case, no CPP is being deducted). The question also does not mention any other tax-deductible payroll deductions (like RPP contributions), so there is nothing to subtract from taxable earnings.
Therefore, Anthony's net taxable income for the week is $775.00.

Question #3

An interruption of earnings occurs when there is a period of how many days with no insurable earnings?

  • A. Seven calendar days
  • B. Five business days
  • C. Five calendar days
  • D. Seven business days
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

When is the government-prescribed rate of interest set?

  • A. Each calendar quarter
  • B. Semi-annually
  • C. Annually
  • D. The first of each month
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Evangeline earns $1,075.00 weekly plus $154.00 in overtime. Calculate Evangeline's Quebec Parental Insurance Plan (QPIP) premium.

Reveal Solution  Discussion  0

Correct Answer:

$5.28 (employee QPIP premium for the week)
Explanation:
QPIP premiums are calculated on an employee's insurable earnings in Quebec (up to the annual maximum insurable earnings). For 2026, Revenu Quebec shows the employee QPIP premium rate is 0.430% (0.00430) and the maximum insurable earnings are $103,000.
Step 1: Determine Evangeline's weekly insurable earnings (assuming all earnings are QPIP-insurable and the annual maximum will not be exceeded, as the question implies):
Regular earnings $1,075.00 + overtime $154.00 = $1,229.00.
Step 2: Apply the employee QPIP rate:
$1,229.00 × 0.430% = $1,229.00 × 0.00430 = $5.2847.
Step 3: Round to cents (standard payroll practice): $5.28.
Payroll would deduct $5.28 from Evangeline's pay for QPIP for that week and remit it along with other source deductions as required. The deduction continues until the employee reaches the annual QPIP maximum premium (based on the annual insurable earnings limit).

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