National Payroll Institute Payroll Fundamentals PF1

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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. The amount of notice the employer must give an employee depends on:

A) The industry in which the employer operates
B) The size of the employer's payroll
C) The employee's length of service and the jurisdiction in which they work
D) The employee's length of service and the jurisdiction in which they live

2. An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:

A) An allowance
B) A benefit
C) An expense reimbursement
D) An earning

3. Paula is granted a pay increase. The paperwork informing the payroll department of the pay increase is two pay periods late. What method would be used to calculate income taxes on the separate retroactive payment?

A) Retroactive tax method
B) Lump-sum tax method
C) Bonus tax method
D) Tax table method

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) Defined contribution pension plan
C) Registered Retirement Savings Plan
D) All of the above

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

Solutions: