Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

For a direct deposit reversal due to a common error, the correct course of action is to notify the employee and correct the error. It is important to communicate with the employee promptly, explain the situation, and resolve the issue by reversing the incorrect deposit and making the necessary correction to ensure the employee receives the correct payment. This approach prioritizes transparency, accountability, and compliance with payroll regulations.

Options A, B, and C are not the correct actions to take in this scenario. While notifying human resources may be necessary for documentation purposes, the primary responsibility lies in communicating with the employee directly. Automatically reversing the payment without informing the employee can lead to confusion and lack of clarity regarding the situation. Refunding the amount to the employer is not the appropriate action when addressing a direct deposit error involving an employee's payment.