If a company uses a special payroll bank account:
A) The company does not need to issue paychecks.
B) The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
C) The company must use a federal depository bank for the payroll bank account.
D) There is no need for a payroll register.
E) There is no need to issue W-2's.

Question

Quizplus · Accepted Answer

When a company uses a special payroll bank account, it typically draws one check for the entire payroll from their regular bank account and deposits it into the payroll bank account. This allows for easier management of payroll funds and can help ensure timely and accurate payment of employees. However, the company still needs to issue paychecks, maintain a payroll register, and provide W-2's to employees at the end of the year. The choice of a federal depository bank for the payroll account is not necessarily required.

If a Company Uses a Special Payroll Bank Account