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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. How many pay periods will be used to calculate insurable earnings inBlock 15Bon the Record of Employment if the employee is paidweekly?

A) Last27pay periods (or less if period of employment is shorter)
B) Last13pay periods (or less if period of employment is shorter)
C) Last7pay periods (or less if period of employment is shorter)
D) Last14pay periods (or less if period of employment is shorter)

2. A 900-series Social Insurance Number is issued to:

A) Canadian residents with an expired Social Insurance Number
B) Landed immigrants working outside of Canada
C) Canadian residents working outside of Canada
D) Individuals who are neither Canadian citizens nor permanent residents

3. A Third Party Demand is issued by the Canada Revenue Agency for:

A) A debt owed to a third party creditor
B) Overpaid Employment Insurance benefits
C) Unpaid income taxes or unpaid statutory deductions
D) Outstanding child support and/or maintenance payments

4. When would a Record of Employment be issued for an employee paid mainly by commission?

A) When the employee has not earned any commission after six months
B) When the employment relationship has been severed
C) An employee mainly paid by commission is not entitled to receive a Record of Employment
D) When the employee has had seven consecutive calendar days without both work and insurable earnings

5. 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) $7,500.00
B) $2,000.00
C) $10,000.00
D) None of the retiring allowance is eligible

Solutions: