Fundamental Payroll Certification (FPC) 2025 – 400 Free Practice Questions to Pass the Exam

Direct Deposit allows employees to have their net pay automatically transferred to a financial institution of their choice. This means that when payroll is processed, their earnings are directly deposited into their checking or savings account without the need for a physical paycheck. This method provides convenience and ensures that employees receive their earnings on payday, without delays or the need to visit a bank.

The other options do not accurately describe the primary function of Direct Deposit. Depositing cash at an ATM involves physically going to the ATM and handling cash, which is not part of the Direct Deposit process. While withdrawing funds instantly is an option available through ATMs or bank services, it is not a characteristic or purpose of Direct Deposit itself. Similarly, making payments directly from their paycheck does not align with the main function of Direct Deposit, which focuses solely on the transfer of net pay rather than facilitating payments.