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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. An employee who lives in Ontario and reports to work at a permanent establishment of the employer in Quebec will have income tax deducted based on which province?

A) Ontario & Quebec
B) Employee's choice
C) Quebec
D) Ontario

2. By the authority of which Act can the Canada Revenue Agency garnish the wages of an employee who has failed to pay Employment Insurance premiums, Canada Pension Plan contributions, or income tax deductions?

A) The Income Tax Act
B) The Creditors' Relief Act
C) The Employment Insurance Act
D) The Canada Pension Plan Act

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

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

4. The source deductions form completed by all new employees in Quebec is called:

A) T2222
B) T1213
C) TD1-AB
D) TP-1015.3-V

5. The formula for calculating net pay is:

A) Pensionable earnings minus total deductions
B) Gross earnings minus total deductions
C) Gross earnings minus total tax
D) Net taxable income minus total deductions

Solutions: