Certified Payroll Professional Practice Exam 2025 – Your All-in-One Guide to Exam Success

Question: 1 / 400

What is the purpose of a transit routing number?

To identify the employee's union

To track employee attendance

To assign a unique identifier to a financial institution

A transit routing number is used to assign a unique identifier to a financial institution. This number is crucial for processing electronic transactions, such as direct deposits of payroll, as it helps in routing funds accurately to the correct financial institution. Option A, which mentions identifying the employee's union, is not the purpose of a transit routing number. Option B, tracking employee attendance, is unrelated to the function of a transit routing number. Lastly, option D, determining the employee's tax withholdings, is also not the purpose of a transit routing number.

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To determine the employee's tax withholdings

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