I took the PF1 Payroll Fundamentals 1Exam today. Passed it with the score of more than my expectations, 90% actually. Only wanted to let you know that I passd
Exam Code: PF1
Exam Name: Payroll Fundamentals 1Exam
Updated: Oct 14, 2026
Q & A: 75 Questions and Answers
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| Section | Objectives |
|---|---|
| Topic 1: Earnings, Deductions, and Taxation | - Types of earnings
|
| Topic 2: Payroll Records and Compliance Reporting | - Recordkeeping requirements
|
| Topic 3: Payroll Fundamentals and Compliance Framework | - Payroll legislation and regulatory bodies
|
Michael is an employee in Alberta who is paid bi-weekly and earns $1,600.00 per pay period. He has a taxable meal allowance of $30.00 per pay period. His federal and provincial TD1s on file show a claim code
2. Michael already reached the annual maximum first and second Canada Pension Plan (CPP) contributions before this pay. Calculate his total federal and provincial income taxes.
Correct Answer:
(total federal + Alberta tax): $173.48
Explanation:
Taxable gross for the period = $1,600.00 + $30.00 = $1,630.00 (a taxable allowance is included in income for tax withholding).
Using CRA T4032-AB (Biweekly, 26 pay periods) with claim code 2:
Federal tax at pay $1,630 falls in the $1,619-$1,635 range # CC2 = $107.35.
Alberta provincial tax at pay $1,630 falls in the $1,628-$1,644 range # CC2 = $46.55.
Subtotal tax from the tables = $107.35 + $46.55 = $153.90.
CRA notes these tax tables build in the tax credits for CPP/EI, so when CPP is not deducted (because annual max already reached), you must increase tax withholding accordingly.
CPP that would have been deducted this pay (using CRA rates/YBE):
Pensionable = $1,630 # ($3,500/26 = $134.62) = $1,495.38; CPP (4.95% + 1.00% = 5.95%) = $88.98.
Add back missing credits: Federal 14% × 88.98 = $12.46; Alberta 8% × 88.98 = $7.12 # total $19.58.
Final total tax = $153.90 + $19.58 = $173.48.
Which of the following types of payments made by a private organization would not be subject to all statutory deductions?
Correct Answer: C 🗳️
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A Third Party Demand is issued by the Canada Revenue Agency for:
Correct Answer: C 🗳️
Explanation: Only visible for ITexamReview members. You can sign-up / login (it's free).
When would a Record of Employment be issued for an employee paid mainly by commission?
Correct Answer: D 🗳️
Explanation: Only visible for ITexamReview members. You can sign-up / login (it's free).
A paper Record of Employment must be issued:
Correct Answer: B 🗳️
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