Purchase National Payroll Institute : PF1 Exam Materials and then pass exam easily

Updated: Oct 12, 2026

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National Payroll Institute PF1 Exam Overview:

Certification Vendor:National Payroll Institute
Exam Name:Payroll Fundamentals 1
Exam Number:PF1
Available Languages:English, French
Exam Format:Midterm Exam, Assignments, Remote Proctored Online Exam, Final Exam, Discussion Activities
Exam Price:USD 550-600
Related Certifications:Payroll Compliance Professional (PCP)
Passing Score:65%
Exam Duration:180-240
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
Commission Payments- Commission payroll processing
  • 1. Commission earnings calculations
  • 2. Tax treatment of commissions
Employment Income – Allowances, Expenses and Benefits- Taxable and non-taxable benefits
  • 1. Allowances and reimbursements
  • 2. Benefit taxation
Provincial Remittances- Provincial payroll requirements
  • 1. Provincial reporting obligations
  • 2. Provincial payroll taxes
Federal Remittances- Government remittance obligations
  • 1. CPP and EI remittances
  • 2. Income tax remittances
Year-End Processing- Federal and provincial year-end reporting
  • 1. Year-end reconciliations
  • 2. T4 and RL-1 preparation
Employment Income – Regular Earnings- Regular payroll calculations
  • 1. Overtime calculations
  • 2. Salary and hourly wage calculations
Workers’ Compensation- Workers compensation administration
  • 1. Premium calculations
  • 2. Employer reporting
Termination of Employment- Termination processing
  • 1. Severance payments
  • 2. Termination pay calculations
Record of Employment- ROE processing
  • 1. ROE completion requirements
  • 2. Electronic filing
Non-Statutory Deductions- Voluntary deductions
  • 1. Union dues
  • 2. Benefit premiums
New Employee Information- Employee setup and documentation
  • 1. Payroll records management
  • 2. Federal and provincial tax forms
Payroll Accounting- Payroll accounting practices
  • 1. Journal entries
  • 2. Payroll reconciliations
Non-Regular Payments- Special payroll payments
  • 1. Bonus payments
  • 2. Vacation pay calculations

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

Question #1

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. Registered Retirement Savings Plan
  • C. Defined contribution pension plan
  • D. All of the above
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Which statutory deductions is salary continuance subject to?

  • A. All deductions
  • B. All deductions except Employment Insurance premiums
  • C. All deductions except Employment Insurance and Quebec Parental Insurance Plan premiums
  • D. All deductions except Quebec Parental Insurance Plan premiums
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

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 #4

A 900-series Social Insurance Number is issued to:

  • A. Canadian residents with an expired Social Insurance Number
  • B. Individuals who are neither Canadian citizens nor permanent residents
  • C. Landed immigrants working outside of Canada
  • D. Canadian residents working outside of Canada
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #5

Michael is an employee in Alberta who is paid bi-weekly and earns $1,600.00 per pay period. He has a taxable meal allowance of $30.00 per pay period. His federal and provincial TD1s on file show a claim code
2. Michael already reached the annual maximum first and second Canada Pension Plan (CPP) contributions before this pay. Calculate his total federal and provincial income taxes.

Reveal Solution  Discussion  0

Correct Answer:

(total federal + Alberta tax): $173.48
Explanation:
Taxable gross for the period = $1,600.00 + $30.00 = $1,630.00 (a taxable allowance is included in income for tax withholding).
Using CRA T4032-AB (Biweekly, 26 pay periods) with claim code 2:
Federal tax at pay $1,630 falls in the $1,619-$1,635 range # CC2 = $107.35.
Alberta provincial tax at pay $1,630 falls in the $1,628-$1,644 range # CC2 = $46.55.
Subtotal tax from the tables = $107.35 + $46.55 = $153.90.
CRA notes these tax tables build in the tax credits for CPP/EI, so when CPP is not deducted (because annual max already reached), you must increase tax withholding accordingly.
CPP that would have been deducted this pay (using CRA rates/YBE):
Pensionable = $1,630 # ($3,500/26 = $134.62) = $1,495.38; CPP (4.95% + 1.00% = 5.95%) = $88.98.
Add back missing credits: Federal 14% × 88.98 = $12.46; Alberta 8% × 88.98 = $7.12 # total $19.58.
Final total tax = $153.90 + $19.58 = $173.48.

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