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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. What is piecework?

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

2. 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) Defined benefit pension plan
B) All of the above
C) Registered Retirement Savings Plan
D) Defined contribution pension plan

3. A Third Party Demand is issued by the Canada Revenue Agency for:

A) A debt owed to a third party creditor
B) Overpaid Employment Insurance benefits
C) Outstanding child support and/or maintenance payments
D) Unpaid income taxes or unpaid statutory deductions

4. A retiring allowance includes:

A) Bonus or incentive pay
B) Vacation pay
C) Accumulated overtime
D) Legislated wages in lieu of notice in Quebec
E) None of the above

5. An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:

A) A benefit
B) An earning
C) An expense reimbursement
D) An allowance

Solutions: