Payroll Source - CPP Exam Actual
Questions and Answers 2026
What are some of the advantages and disadvantages of direct
deposit? -
correct answer ✅Advantages:
* Prevent lost and stolen checks
* Employees do not have to take time out of the work day to cash
their check
* Employers do not have to file/store cashed checks and related
documents
* Better control of check stock
Disadvantages:
* Not necessarily a paperless system - statements, authorization
forms
* Cannot be made mandatory
* Employer cannot dictate the financial institution that the
employee uses
* Employer's loss of interest on payroll funds before checks clear
What laws cover unclaimed paychecks, and what is generally
required of the employer? -
correct answer ✅State escheat laws govern the treatment of
, Payroll Source - CPP Exam Actual
Questions and Answers 2026
unclaimed checks. Under these laws employers are generally
required to:
* Try to locate and contact the employee
* File an annual report with the state where the employee resides
that include the employee's name, last known address, amount of
the check and the related payday
* Hold the checks for a certain length of time before turning them
over to the state as abandoned property
What laws govern how often an employer must pay its employees?
-
correct answer ✅State laws govern how often employers must pay
employees
Explain the process of prenotification under the Automated
Clearing House system. -
correct answer ✅Prenotification involves sending zero dollar
amounts through the ACH network as a test before the first actual
direct deposit for an employee. If such a prenote is used, it must be
sent at least 6 business days before any actual pay is sent through
the network. This is a test of the accuracy of the information in the
authorization agreement.
Questions and Answers 2026
What are some of the advantages and disadvantages of direct
deposit? -
correct answer ✅Advantages:
* Prevent lost and stolen checks
* Employees do not have to take time out of the work day to cash
their check
* Employers do not have to file/store cashed checks and related
documents
* Better control of check stock
Disadvantages:
* Not necessarily a paperless system - statements, authorization
forms
* Cannot be made mandatory
* Employer cannot dictate the financial institution that the
employee uses
* Employer's loss of interest on payroll funds before checks clear
What laws cover unclaimed paychecks, and what is generally
required of the employer? -
correct answer ✅State escheat laws govern the treatment of
, Payroll Source - CPP Exam Actual
Questions and Answers 2026
unclaimed checks. Under these laws employers are generally
required to:
* Try to locate and contact the employee
* File an annual report with the state where the employee resides
that include the employee's name, last known address, amount of
the check and the related payday
* Hold the checks for a certain length of time before turning them
over to the state as abandoned property
What laws govern how often an employer must pay its employees?
-
correct answer ✅State laws govern how often employers must pay
employees
Explain the process of prenotification under the Automated
Clearing House system. -
correct answer ✅Prenotification involves sending zero dollar
amounts through the ACH network as a test before the first actual
direct deposit for an employee. If such a prenote is used, it must be
sent at least 6 business days before any actual pay is sent through
the network. This is a test of the accuracy of the information in the
authorization agreement.
