Certified Payroll Professional Practice Exam

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Prepare for your Certified Payroll Professional Exam with our comprehensive quiz featuring multiple-choice questions and detailed explanations. Enhance your understanding of payroll concepts and boost your confidence for the exam day!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What entities are involved in the ACH process for direct deposit?

Employee, Internal Revenue Service, Employee Union
Payroll Department, Tax Authorities, Financial Regulators
Employer, Originating Financial Institution, Receiving Financial Institution, Employee
Trade Union, Government Agency, Bank Oversight Committee

The correct answer is: Employer, Originating Financial Institution, Receiving Financial Institution, Employee

In the ACH process for direct deposit, multiple entities are involved in facilitating the electronic transfer of funds from the employer to the employee's bank account. The correct answer is C, which includes the following entities: Employer (representing the company making the payment), Originating Financial Institution (the employer's bank initiating the ACH transfer), Receiving Financial Institution (the employee's bank receiving the funds), and the Employee (the recipient of the direct deposit). These are the key participants in the ACH process for direct deposit, ensuring a smooth and efficient electronic payment system. Options A, B, and D are incorrect because they include entities that are not directly involved in the ACH process for direct deposit.