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National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

1. When is the government-prescribed rate of interest set?

A) The first of each month
B) Annually
C) Semi-annually
D) Each calendar quarter

2. Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?

A) Blocks 15B and 17C
B) Block 15B only
C) Block 15C only
D) Block 17C only

3. Charlene receives $50.00 each pay for her meals. This is an example of:

A) An allowance
B) A reimbursement
C) A benefit
D) None of the above

4. Expense reimbursements are:

A) Dollar amounts paid to employees to cover expenses that they incur while performing their job
B) Values attributed to something the employer has either provided to an employee or paid for on an employee's behalf
C) Dollar amounts the employer pays for the work an employee performs
D) Dollar amounts paid to employees for the use of their personal property for business purposes

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

Solutions: