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

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What does OFDI stand for in the context of payroll?

Original Financial Data Investigation

Originating Depository Financial Institution

OFDI stands for Originating Depository Financial Institution. This term is crucial in the context of payroll because it refers to the financial institution that initiates electronic funds transfers as part of payroll processing. In payroll, this is particularly relevant when discussing direct deposits where employees' wages are electronically deposited into their bank accounts. Understanding the role of the originating depository financial institution helps ensure accurate and timely payments to employees, as it is responsible for initiating these transactions securely and effectively. This concept is foundational in payroll management, especially in relation to adhering to regulations and ensuring smooth operations within the payroll cycle.

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Official Fund Deposit Instruction

Online Federal Depository Finances Interface

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