Certified Payroll Professional Practice Exam

What is the purpose of Form 688-D in payroll processing?

1. Employee enrollment

2. Employment verification

3. Income tax filing

4. Releasing IRS levies

The correct answer is: Releasing IRS levies

Form 688-D serves the purpose of releasing IRS levies in payroll processing. This means that if an employee has had their wages garnished by the IRS, this form is used to stop the garnishment and release the funds back to the employee. This form is not used for employee enrollment, employment verification, or income tax filing. Employee enrollment typically involves completing paperwork and providing personal information to be added to a company's payroll system. Employment verification is the process of verifying an employee's work history, while income tax filing involves reporting and filing taxes with the IRS. None of these tasks involve releasing IRS levies, making them incorrect options for the purpose of Form 688-D.