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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. Raminder was hired in January 1997. He was fully vested in the organization's pension plan at the time he received the retiring allowance. His employment was terminated on May 1, 2006 and he was paid a
$10,000.00 retiring allowance. Calculate the eligible portion of the retiring allowance.

A) $2,000.00
B) $7,500.00
C) None of the retiring allowance is eligible
D) $10,000.00

2. 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) Registered Retirement Savings Plan
B) All of the above
C) Defined contribution pension plan
D) Defined benefit pension plan

3. The Canada Revenue Agency form that is completed to allow a commissioned employee to claim non- reimbursed expenses at source is a:

A) TD1X
B) TP-1015.R.13.1-V
C) TD1
D) T777

4. Charlene receives $50.00 each pay for her meals. This is an example of:

A) A benefit
B) A reimbursement
C) None of the above
D) An allowance

5. A death benefit is a:

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

Solutions: