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- Total Questions: 75
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- Total Questions: 75
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National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: New Employee Information | - Employee setup and documentation
|
| Topic 2: Year-End Processing | - Federal and provincial year-end reporting
|
| Topic 3: Federal Remittances | - Government remittance obligations
|
| Topic 4: Termination of Employment | - Termination processing
|
| Topic 5: Workers’ Compensation | - Workers compensation administration
|
| Topic 6: Employment Income – Regular Earnings | - Regular payroll calculations
|
| Topic 7: Payroll Accounting | - Payroll accounting practices
|
| Topic 8: Record of Employment | - ROE processing
|
| Topic 9: Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
| Topic 10: Non-Regular Payments | - Special payroll payments
|
| Topic 11: Non-Statutory Deductions | - Voluntary deductions
|
| Topic 12: Provincial Remittances | - Provincial payroll requirements
|
| Topic 13: Commission Payments | - Commission payroll processing
|
Everything Candidates Ask About the National Payroll Institute PF1 Exam
The PF1 exam is the official National Payroll Institute exam that leads to the Payroll Fundamentals certification, positioned at the Intermediate level. It validates the skills employers expect from certified professionals, and passing it is a concrete step forward in an IT career. It is also connected with other credentials in the same track, including Payroll Compliance Professional (PCP).
Yes. TestKingsIT offers a free PDF demo of the National Payroll Institute Payroll Fundamentals 1Exam material, so you can check the question style and answer quality before paying. After purchase, your product includes 365 days of free updates; once that period expires, you can extend the update service at a 50% discount from your member zone.
The passing score for the National Payroll Institute Payroll Fundamentals 1Exam exam is 65%, and the official registration fee is USD 550-600. Keep in mind that a failed attempt means paying the full fee again to retake it. A sensible approach is to test yourself first with TestKingsIT practice questions and only book your seat once your mock scores sit comfortably above 65%.
The National Payroll Institute Payroll Fundamentals 1Exam exam is organized into 13 domains. The main ones include Provincial Remittances; Non-Statutory Deductions; New Employee Information. Weightings tell you where to spend most of your study time, and the full topic breakdown is listed in the exam outline section above on this page.
If you take the National Payroll Institute Payroll Fundamentals 1Exam exam within 60 days of your purchase and do not pass, you can apply for a full refund under the TestKingsIT refund policy. The claim requires a scanned enrollment slip and your official Score Report in PDF, submitted within 2 days after the exam; claims are processed within 7 days. Note that the guarantee applies only to the corresponding exam — attempts taken within 3 days of purchase, downloaded-but-never-taken exams, free materials, and expired orders are not covered, and the candidate name must match the payer name. Prefer new material instead of a refund? You can swap for two free exam products of equal value and keep the update service on your original purchase. As for delivery, everything is instant: the download link reaches your mailbox within one minute of payment (contact support if nothing arrives within 2 hours), and there is no limit on how many computers you can install it on.
Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1. Requirements like these can change, so before you book, confirm the current eligibility rules on the official page: https://payroll.ca/certification/payroll-fundamentals-1.
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
PF1 Exam - Net Pay Calculation (Template Worksheet)
Scenario
Diane Lemay works for Monarch Construction in Alberta and earns an annual salary of $49,500.00, paid on a semi-monthly basis.
The company provides its employees with group term life insurance coverage of two times annual salary and pays a monthly premium of $0.62 per $1,000.00 of coverage.
Diane uses her car to meet with clients on company business and receives a taxable car allowance of $50.00 per pay.
The company has a defined contribution pension plan to which Diane contributes 5% of her salary each pay.
Diane also contributes $20.00 to United Way and has $5.00 deducted for her social club membership each pay. She belongs to a union and pays 2% of her salary in union dues per pay period.
Diane's federal and provincial TD1 claim codes are 1. She will not reach the first Canada Pension Plan or Employment Insurance annual maximums this pay period.
Required: Calculate the employee's net pay, following the order of the steps in the net pay template.
EXHIBIT A - Net Pay Template (Fill in all blanks)
STATUTORY DEDUCTIONS
OTHER DEDUCTIONS

Given Data (Reference)
Step 1 - Calculate the employee's gross taxable earnings (GTE) for this pay.
[ _________________________________ ]
Step 2 - Calculate the pensionable earnings (PE).
[ _________________________________ ]
Step 3 - Calculate the insurable earnings (IE).
[ _________________________________ ]
Step 4 - Calculate the net taxable income (CRA) (NTI).
[ _________________________________ ]
Step 5 - Calculate the net taxable income (RQ) (NTI).
[ _________________________________ ]
Step 6 - Calculate Diane's Canada Pension Plan contribution.
[ _________________________________ ]
Step 7 - Calculate Diane's Employment Insurance premium.
[ _________________________________ ]
Step 8 - Calculate Diane's Quebec Parental Insurance Plan premium.
[ _________________________________ ]
Step 9 - Determine Diane's federal income tax.
[ _________________________________ ]
Step 10 - Determine Diane's provincial income tax.
[ _________________________________ ]
Step 11 - Calculate Diane's total deductions (statutory + other).
[ _________________________________ ]
Step 12 - Calculate Diane's net pay.
[ _________________________________ ]
Correct Answer:
See the Explanation part for answer for each step.
Explanation:
Step 1 - Gross Taxable Earnings (GTE)
Salary per pay: 49,500 ÷ 24 = $2,062.50
Taxable car allowance: $50.00
Group term life taxable benefit:
Coverage = 2 × 49,500 = 99,000
Monthly premium = (99,000 ÷ 1,000) × 0.62 = 99 × 0.62 = 61.38
Semi-monthly benefit = 61.38 ÷ 2 = $30.69
GTE = $2,143.19
Step 2 - Pensionable Earnings (PE)
PE = $2,112.50 (2,062.50 + 50.00)
Step 3 - Insurable Earnings (IE)
IE = $2,112.50
Step 4 - Net Taxable Income (CRA) (NTI)
RPP = 5% × 2,062.50 = $103.13
Union dues = 2% × 2,062.50 = $41.25
NTI (CRA) = 2,143.19 # 103.13 # 41.25 = $1,998.81
Step 5 - Net Taxable Income (RQ)
$0.00
Step 6 - CPP (base CPP)
Period exemption = 3,500 ÷ 24 = $145.83
Contributory = 2,112.50 # 145.83 = $1,966.67
CPP = 1,966.67 × 5.95% = $117.02
CPP = $117.02
Step 6B - 2nd CPP (CPP2)
CPP2 = $0.00
Step 7 - EI premium
EI = 2,112.50 × 1.63% = $34.43
EI = $34.43
Step 8 - QPIP
$0.00
Step 9 - Federal income tax (CC1, semi-monthly)
$156.10
Step 10 - Alberta income tax (CC1, semi-monthly)
$73.20
Step 11 - Total deductions
Statutory: 117.02 + 34.43 + 156.10 + 73.20 = $380.75
Other: RPP 103.13 + Union 41.25 + United Way 20.00 + Social club 5.00 = $169.38 Total deductions = $550.13 Step 12 - Net pay Cash pay (salary + car allowance) = 2,062.50 + 50.00 = $2,112.50 Net pay = 2,112.50 # 550.13 = $1,562.37
The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:
- A. T777
- B. TP-1015.R.13.1-V
- C. TD1
- D. TD1X
Correct Answer: D 🗳️
Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).
Vacation pay on termination would be recorded in which Block(s) on the Record of Employment?
- A. Block 17A only
- B. It would not be recorded
- C. Blocks 15B, 15C P.P. 1 and 17A
- D. Block 15B only
Correct Answer: C 🗳️
Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).
The capital cost of an employer-owned vehicle includes:
- A. The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment
- B. The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
- C. The cost of the vehicle excluding sales tax
- D. The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
Correct Answer: D 🗳️
Explanation: Only visible for TestKingsIT members. You can sign-up / login (it's free).
Alyssa is a member of her employer's Defined Contribution Pension Plan. The plan defines the contribution as 3% of the employee's pensionable earnings, with the employer matching the employee's contribution.
Alyssa's pensionable earnings are $3,400.00 per month. Calculate the total payment to be remitted to Alyssa's Defined Contribution Pension Plan each month.
Correct Answer:
$204.00 per month
Explanation:
In a Defined Contribution (DC) pension plan, contributions are calculated as a set percentage of the employee' s pensionable earnings, and the total remittance is usually the sum of the employee deduction plus the employer's matching contribution, based on the plan text. Here, the plan states the employee contributes 3% of pensionable earnings, and the employer matches the employee contribution.
Step 1: Calculate the employee's pension contribution:
3% × $3,400.00 = 0.03 × 3,400.00 = $102.00.
Step 2: Calculate the employer match:
Because the employer matches the employee contribution, the employer contributes $102.00 as well.
Step 3: Total remittance to the plan:
$102.00 (employee) + $102.00 (employer) = $204.00 each month.
From a payroll processing perspective, the employee amount is withheld from gross pay as a payroll deduction according to plan rules, while the employer match is recorded as an employer expense. Payroll remits both amounts to the plan administrator following the plan's remittance schedule, and should reconcile pensionable earnings and contributions to ensure accuracy and compliance with plan terms.
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