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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. 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.

2. Matt earns $10.10 per hour and works 37.5 hours per week. Calculate Matt's regular bi-weekly earnings.

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

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

4. Which of the following company-compulsory deductions would reduce the employee's gross taxable income for purposes of withholding income taxes?

A) All of the above
B) Employee payment of provincial health care plan premiums
C) Employee payment of a portion of group benefit plan premiums
D) Employee contributions to a group Registered Retirement Savings Plan (RRSP)

5. Jasmine works for a Saskatchewan employer and earns $500.00 weekly. Calculate her Employment Insurance (EI) premium.

Solutions: