Certified Payroll Professional Practice Exam

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Prepare for the Certified Payroll Professional Exam with comprehensive flashcards and multiple choice questions. Each question is accompanied by detailed hints and explanations to aid your understanding. Get ready to ace your Certified Payroll Professional Exam!

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According to the Automated Clearinghouse rules, what is required for direct deposit transactions?

  1. Authorization by the employer

  2. Authorization by the internal audit team

  3. Authorization by the payroll department

  4. Pre-authorization by the recipient employee

The correct answer is: Pre-authorization by the recipient employee

For direct deposit transactions according to the Automated Clearinghouse rules, pre-authorization by the recipient employee is required. This ensures that the employee has provided consent for their wages to be directly deposited into their designated bank account. It is a crucial step to prevent any unauthorized transactions and ensure compliance with financial regulations. Options A, B, and C are incorrect because while authorization by the employer, internal audit team, or payroll department may be part of the process, the primary requirement specified by the ACH rules is the pre-authorization by the recipient employee.

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