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| Section | Objectives |
|---|---|
| Commission Payments | - Commission payroll processing
|
| Non-Regular Payments | - Special payroll payments
|
| Federal Remittances | - Government remittance obligations
|
| Termination of Employment | - Termination processing
|
| Payroll Accounting | - Payroll accounting practices
|
| New Employee Information | - Employee setup and documentation
|
| Employment Income – Regular Earnings | - Regular payroll calculations
|
| Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
| Provincial Remittances | - Provincial payroll requirements
|
| Year-End Processing | - Federal and provincial year-end reporting
|
| Non-Statutory Deductions | - Voluntary deductions
|
| Record of Employment | - ROE processing
|
| Workers’ Compensation | - Workers compensation administration
|
The PF1 exam is how National Payroll Institute decides who earns the Payroll Fundamentals certification, positioned at the Intermediate level. It checks whether you can apply the National Payroll Institute Payroll Fundamentals 1Exam objectives to realistic problems — the skill employers are actually hiring for. It also sits within a broader certification ecosystem covering Payroll Compliance Professional (PCP), so the effort compounds across your career. In a crowded global market, that badge is a competitive edge you can point to.
The National Payroll Institute Payroll Fundamentals 1Exam blueprint spans 13 domains, led by Commission Payments, Termination of Employment, and Workers’ Compensation. Use the weightings as a budget: heavier domains earn heavier slices of your week. The full topic breakdown is in the exam topics section above — plan against it, not against hunches.
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National Payroll Institute lists the National Payroll Institute Payroll Fundamentals 1Exam question formats as: Assignments, Discussion Activities, Midterm Exam, Final Exam, Remote Proctored Online Exam. Format shapes tactics — find the real question sentence inside long scenario stems before reading the details, and re-verify every selection on multi-answer items. VerifiedDumps's 75 practice questions exercise these formats until they feel like old acquaintances.
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An employee has the use of a company-leased vehicle for both business and personal use. This is an example of:
Correct Answer: C 🗳️
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Which of the following is not correct?
Correct Answer: C 🗳️
Explanation: Only visible for VerifiedDumps members. You can sign-up / login (it's free).
Duncan Drapak was employed in Ontario. Upon termination of his employment, he will be paid $7,760.00 legislated wages in lieu of notice together with his final weekly pay of $875.00. Calculate Duncan's Canada Pension Plan (CPP) contribution if the yearly maximum contribution will not be exceeded.
Reveal Solution Discussion 0Correct Answer:
$509.78
Explanation:
Legislated wages in lieu of notice are treated as pensionable employment earnings for CPP purposes, so they are included with the employee's final regular pay when calculating CPP deductions (assuming no CPP exemption applies).
Step 1: Determine total pensionable earnings for the week:
$7,760.00 + $875.00 = $8,635.00.
Step 2: Subtract the CPP basic exemption (Year's Basic Exemption is $3,500 annually). For a weekly payroll, the basic exemption is prorated:
$3,500 ÷ 52 = $67.31.
CPP contributory earnings for the week:
$8,635.00 # $67.31 = $8,567.69.
Step 3: Apply the 2026 CPP employee contribution rate of 5.95% (base CPP). The question states the annual maximum will not be exceeded, so no capping is required in this calculation.
CPP contribution:
$8,567.69 × 5.95% = $509.7777..., rounded to $509.78.
A paper Record of Employment must be issued:
Correct Answer: D 🗳️
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A premium payment for overtime hours worked or a rate per piece of goods produced is an example of:
Correct Answer: C 🗳️
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