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Updated: Aug 28, 2026

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National Payroll Institute PF1 Exam Overview:

Certification Vendor:National Payroll Institute
Exam Name:Payroll Fundamentals 1
Exam Number:PF1
Real Exam Qty:73–75
Related Certifications:Payroll Compliance Legislation
Payroll Fundamentals 2
Passing Score:65%
Available Languages:English
Exam Format:Case studies, Multiple-choice, Fill-in-the-blank
Exam Price:$499.00 – $649.00 CAD
Exam Duration:120 minutes
Certificate Validity Period:3 years
Recommended Training:Official PF1 Online Course
Exam Registration:National Payroll Institute Registration
Sample Questions:National Payroll Institute PF1 Sample Questions
Exam Way:Remote online proctored exam; available via online, classroom, or challenge options
Pre Condition:Successful completion of Payroll Compliance Legislation (PCL) course/exam
Official Syllabus URL:https://payroll.ca/certification/payroll-fundamentals-1

National Payroll Institute PF1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Termination and Special Payments30%- Termination payments
  • 1. Wages in lieu of notice, severance pay
    • 2. Retiring allowances, death benefits
      - Leaves and absences
      • 1. Sick leave, maternity/parental leave payments
        • 2. Vacation pay, statutory holidays
          Topic 2: Record of Employment (ROE)20%- ROE completion requirements
          • 1. Block-by-block reporting rules
            • 2. Insurable/pensionable earnings reporting
              - Submission and deadlines
              • 1. Electronic vs paper filing
                Topic 3: Individual Pay Calculations40%- Regular earnings
                • 1. Hourly, salary, commission calculations
                  • 2. Pay period types and frequency
                    - Non-regular earnings
                    • 1. Allowances, taxable benefits
                      • 2. Overtime, bonuses, retroactive pay
                        Topic 4: Communication and Compliance10%- Accuracy and documentation
                        • 1. Record keeping and audit trails
                          - Stakeholder communication
                          • 1. Employee, government, third-party requirements

                            National Payroll Institute Payroll Fundamentals 1Exam Sample Questions:

                            Question 1

                            An employee who lives in Ontario and reports to work at a permanent establishment of the employer in Quebec will have income tax deducted based on which province?

                            A. Ontario
                            B. Quebec
                            C. Employee's choice
                            D. Ontario & Quebec


                            Question 2

                            The source deductions form completed by all new employees in Quebec is called:

                            A. T2222
                            B. TD1-AB
                            C. T1213
                            D. TP-1015.3-V


                            Question 3

                            Which of the following types of payments made by a private organization would not be subject to all statutory deductions?

                            A. Retroactive adjustment
                            B. Performance bonus
                            C. Vacation pay when no time was taken
                            D. Directors' fees


                            Question 4

                            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 Saturday of the week in which the last day for which paid, reported in Block 11, occurs
                            B. The last date for which paid
                            C. The last date of the pay period
                            D. The Sunday of the week in which the last day for which paid, reported in Block 11, occurs


                            Question 5

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

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


                            Solutions:

                            Question 1
                            Answer: B
                            Question 2
                            Answer: D
                            Question 3
                            Answer: D
                            Question 4
                            Answer: A
                            Question 5
                            Answer: A

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