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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

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

A) Five calendar days
B) Seven business days
C) Five business days
D) Seven calendar days

2. 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) Consent to withhold statutory deductions
B) A completed T1213
C) A confidentiality agreement
D) A clearance certificate

3. A death benefit is a:

A) Life insurance payment made by an insurance company on the death of an employee
B) Payment made by an employer of vacation pay owing to an employee on their death
C) Payment made by an employer of any outstanding earnings to an employee on their death
D) Discretionary payment made by an employer on the death of an employee, in recognition of the employee's service

4. The employee-employer relationship is deemed to be severed when:

A) There is no expectation of work to be performed by the employee
B) The employee retains the right to be recalled to work
C) The employee continues to accrue benefits in the organization's pension plan
D) None of the above

5. Helen is reimbursed for the cost of the protective clothing that is legally required for her job. The clothing she bought isnot supported by receiptsand is a reasonable reimbursement amount. This is considered:

A) A non-taxable allowance
B) A cash taxable benefit
C) A taxable allowance
D) None of the above

Solutions: