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National Payroll Institute PF1 Exam Syllabus Topics:

National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. The capital cost of an employer-owned vehicle includes:

A) The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
B) The cost of the vehicle excluding sales tax
C) The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
D) The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment

2. Anne Massy works for Liberty Promotions in Nunavut and is provided with a company-leased automobile.
The automobile was in Anne's possession for 365 days. Of the 34,134 kilometres driven, 15,805 kilometres were for business purposes. The monthly lease cost of the vehicle was $198.60, excluding GST calculated at
5%. Anne requested in writing that Liberty Promotions use the optional operating cost method if all conditions apply. She did not reimburse the company for any of the expenses associated with the automobile.
Calculate Anne's annual automobile taxable benefit.

3. What information is required to calculate thestandby charge, thereduced standby charge, and theoperating cost benefitfor a company-owned automobile?

A) Capital cost, total kilometres, personal kilometres, and business kilometres
B) Capital cost, sales tax, availability, total kilometres, business kilometres, and personal kilometres
C) Capital cost, sales taxes, availability
D) Capital cost, availability, business kilometres

4. 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) All of the above
D) Defined contribution pension plan

5. A retiring allowance includes:

A) Bonus or incentive pay
B) Vacation pay
C) Payments in recognition of long service
D) Accumulated overtime

Solutions: