The PF1 exam exists to check real working ability — which is why employers trust it. ValidDumps helps you prepare honestly for that check: 75 expert-verified practice questions covering the National Payroll Institute Payroll Fundamentals 1Exam objectives, current throughout 2026.
| Certification Vendor: | National Payroll Institute |
|---|---|
| Exam Name: | Payroll Fundamentals 1 |
| Exam Number: | PF1 |
| Passing Score: | 65% |
| Available Languages: | English, French |
| Exam Duration: | 180-240 |
| Exam Price: | USD 550-600 |
| Exam Format: | Assignments, Final Exam, Midterm Exam, Remote Proctored Online Exam, Discussion Activities |
| 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 |
| Section | Objectives |
|---|---|
| Record of Employment | - ROE processing
|
| Commission Payments | - Commission payroll processing
|
| Year-End Processing | - Federal and provincial year-end reporting
|
| Non-Statutory Deductions | - Voluntary deductions
|
| Employment Income – Regular Earnings | - Regular payroll calculations
|
| Non-Regular Payments | - Special payroll payments
|
| Federal Remittances | - Government remittance obligations
|
| Workers’ Compensation | - Workers compensation administration
|
| Termination of Employment | - Termination processing
|
| New Employee Information | - Employee setup and documentation
|
| Provincial Remittances | - Provincial payroll requirements
|
| Payroll Accounting | - Payroll accounting practices
|
| Employment Income – Allowances, Expenses and Benefits | - Taxable and non-taxable benefits
|
National Payroll Institute specifies the following prerequisites for the National Payroll Institute Payroll Fundamentals 1Exam: Payroll Compliance Legislation course is required before taking Payroll Fundamentals 1..
Confirm the authoritative details on the official certification page before you register.
As of the latest information, the passing score for the PF1 exam is 65% and the fee is USD 550-600. National Payroll Institute sets both, so verify the current figures on the official site before scheduling.
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Rosa joined Avion Electronics in April 1983. Her employment was terminated on November 30, 2015 and she was paid a $62,500.00 retiring allowance. Rosa joined her company's pension plan in 1986 and was fully vested on termination of employment. Calculate the non-eligible portion of the retiring allowance.
Reveal Solution Discussion 0Correct Answer:
$32,000.00 non-eligible portion
Explanation:
CRA requires separating a retiring allowance into an eligible and non-eligible portion. The eligible portion is the maximum that can be transferred to an RRSP/RPP under the special rules (without using regular RRSP room). The formula is: $2,000 for each year (or part-year) of service before 1996, plus an additional $1,500 for each year (or part-year) before 1989 in which the employee had no employer pension/DPSP benefit vested at the time of payment (or previously paid).
Rosa worked from 1983 to 1995 (inclusive) for pre-1996 service: 13 years × $2,000 = $26,000.
For the extra pre-1989 amount: she joined the pension plan in 1986 and was fully vested when paid the retiring allowance in 2015, so 1986-1988 do not qualify for the extra $1,500. However, 1983-1985 were years before 1989 when she had no vested employer pension benefit, so 3 years × $1,500 = $4,500.
Eligible portion = $26,000 + $4,500 = $30,500.
Non-eligible portion = $62,500 # $30,500 = $32,000.
Phillip is being paid a severance payment with his final pay. Which block should this payment be reported on the Record of Employment?
Correct Answer: D 🗳️
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An organization pays the premiums for a sickness or accident plan for their president only. This would be considered:
Correct Answer: D 🗳️
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Expense reimbursements are:
Correct Answer: B 🗳️
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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.
Correct Answer: D 🗳️
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