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National Payroll Institute PF1 Exam Overview:
| Certification Vendor: | National Payroll Institute |
|---|---|
| Exam Name: | Payroll Fundamentals 1 |
| Exam Number: | PF1 |
| Passing Score: | 65% |
| Exam Duration: | 180-240 |
| Exam Format: | Assignments, Discussion Activities, Remote Proctored Online Exam, Final Exam, Midterm Exam |
| Exam Price: | USD 550-600 |
| Available Languages: | English, French |
| Related Certifications: | Payroll Compliance Professional (PCP) |
| Sample Questions: |  |
| Exam Way: | Online asynchronous course with remote proctored midterm and final exams. |
| Pre Condition: | Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1. |
| Official Syllabus URL: | https://payroll.ca/certification/payroll-fundamentals-1 |
National Payroll Institute PF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Employment Income – Regular Earnings | - Regular payroll calculations
|
| New Employee Information | - Employee setup and documentation
|
| Record of Employment | - ROE processing
|
| Workers’ Compensation | - Workers compensation administration
|
| Termination of Employment | - Termination processing
|
| Non-Regular Payments | - Special payroll payments
|
| Commission Payments | - Commission payroll processing
|
| Non-Statutory Deductions | - Voluntary deductions
|
| Year-End Processing | - Federal and provincial year-end reporting
|
| Payroll Accounting | - Payroll accounting practices
|
| Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
| Federal Remittances | - Government remittance obligations
|
| Provincial Remittances | - Provincial payroll requirements
|
Frequently Asked Questions: National Payroll Institute PF1 Exam
National Payroll Institute Payroll Fundamentals 1Exam is an official certification exam from National Payroll Institute, identified by the exam code PF1. Pass it and you hold the Payroll Fundamentals certification, which sits at the Intermediate level. It also feeds into related credentials, including Payroll Compliance Professional (PCP). In practical terms, this certification tells employers your skills have been measured against the vendor's own standard, which is why certified candidates tend to stand out in hiring and promotion decisions.
Registration for National Payroll Institute Payroll Fundamentals 1Exam officially runs USD 550-600, with 65% required to pass. Worth knowing before you book: retakes are billed at the same full USD 550-600, so a failed attempt doubles your spend. The smarter sequence is to measure yourself first. When your scores on the GetValidTest practice tests clear the passing line with room to spare, consistently, that is your signal to schedule the real thing.
Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1.
Because vendors update their policies without much fanfare, verify the latest entry requirements before you book using the official exam page.
Yes, and we encourage it. Download the free PDF demo of the National Payroll Institute Payroll Fundamentals 1Exam questions from GetValidTest and evaluate the quality on your own terms. After you buy, every update for the next 365 days is free, and when that window closes you can extend your update service at half price.
A 100% money-back guarantee applies, governed by clear conditions. If you sit the National Payroll Institute Payroll Fundamentals 1Exam exam within 60 days of purchase and fail, you can claim a full refund, as long as the exam corresponds to your product. Attempts made within 3 days of purchase are ineligible, as are products you downloaded but never used, free materials, and expired orders; the name on the exam record must match the payer's name. File your claim with a scanned enrollment slip and the official Score Report PDF within 2 days of the exam, and it is settled within 7 days. Rather have a replacement than a refund? You may exchange for two other exam products of equal value, free, and your original product keeps its update service.
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The National Payroll Institute Payroll Fundamentals 1Exam blueprint spans 13 domains. The ones carrying the most weight include Federal Remittances, Record of Employment, and Employment Income – Allowances, Expenses and Benefits. The complete domain-by-domain breakdown is in the exam topics section above; treat it as your master checklist and let the weights tell you where your study hours earn the most.
National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:
What is piecework?
- A. All of the above
- B. A fixed amount of earnings paid to an employee per pay period, regardless of the number of hours worked or the production they accomplished
- C. A rate of pay earned per unit of production, regardless of the length of time taken
- D. Earnings which are based on the amount of time worked, usually at a rate per hour or per day
Correct Answer: C 🗳️
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Steve is physically disabled and his employer pays for his parking spot. This is considered:
- A. A non-cash taxable benefit
- B. A taxable allowance
- C. None of the above
- D. A cash taxable benefit
Correct Answer: C 🗳️
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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
In Block 12 of the Record of Employment, the final pay period ending date for employees who are paid solely by commission or are paid salary plus irregularly paid commission will be:
- A. The Sunday of the week in which the last day for which paid, reported in Block 11, occurs
- B. The Saturday of the week in which the last day for which paid, reported in Block 11, occurs
- C. The last date of the pay period
- D. The last date for which paid
Correct Answer: B 🗳️
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Which of the following situations would not require an employer to issue a Record of Employment?
- A. Full-time employee went on 6 weeks' unpaid leave of absence
- B. Employee is laid off and will not be recalled
- C. A business is sold and the new owner retains all employees and payroll records with no loss of earnings
- D. Employee's earnings fall to 40% of their normal weekly earnings
Correct Answer: C 🗳️
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