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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. The capital cost of an employer-owned vehicle includes:

A) The cost of the vehicle, sales tax, customized heavy-duty suspension and power winches to meet requirement of employment uses
B) The cost of the vehicle excluding sales tax
C) The cost of the vehicle, vehicle options, accessories, sales tax and additions that add to depreciation value
D) The cost of the vehicle, vehicle options, specialized equipment to meet requirements of employment

2. 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.

3. The employee-employer relationship is deemed to be severed when:

A) There is no expectation of work to be performed by the employee
B) None of the above
C) The employee retains the right to be recalled to work
D) The employee continues to accrue benefits in the organization's pension plan

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

A) Last13pay periods (or less if period of employment is shorter)
B) Last27pay 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)

5. In which province or territory is the employer-paid premium for private health insurance coverage that includes dental and prescription coverage considered to be a non-cash taxable benefit?

A) Yukon
B) Quebec
C) British Columbia
D) Ontario

Solutions: