Question

Which of the following is NOT a benefit of using direct deposit for your paycheck or state/federal benefits?

(A) Reduces the amount of taxes deducted from your paycheck.
(B) Ensures your money is available immediately on the payment date.
(C) Eliminates the need for you to visit the bank during their banking hours to cash your check.
(D) Eliminates the risk of stolen checks and forgeries (protecting you from identity theft)

Answer 1

Answer:

The incorrect statement is letter "A": Reduces the amount of taxes deducted from your paycheck.

Explanation:

Direct deposit is one of the most used methods of payroll payment companies handle nowadays. Money is transferred from the employers' bank account to the accounts of the employees safely allowing them to receive their salaries and have it available already in their accounts. Direct deposit reduces the risks of fraud while using checks for salary payments and avoids employees having to go to a bank branch to have their checks cashed.

When it comes to deductions, the keep the regular system as per with checks implying the amount received in the check will be the same as the deposit made to a bank.