My payroll was deposited in my account (direct deposit) on Friday. Today it was taken out. When speaking to our companies CFO he stated the payroll company needs proof (print out faxed) that ALL employees payroll was deducted in order to cut checks. Can they withdraw our payroll without my approval. Who is responsible ultimately for me to get paid?

What reasons did they give for reversing the direct deposit?

The payroll company is owed money. NO MONEY!

So because your company has not paid the payroll company, they have reversed the deposit? I would suggest you get all your fellow employees together and consult an attorney. I don't believe that the reversal was legal.