LESSON 12 4 Preparing Payroll Checks Original created

LESSON 12 -4 Preparing Payroll Checks Original created by M. C. Mc. Laughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School CENTURY 21 ACCOUNTING © Thomson/South-Western

2 page 356 PAYROLL BANK ACCOUNT n Many businesses will use a separate checking account for payroll n A separate checking account for payroll checks helps to protect & control payroll payments n The exact amount needed to pay the payroll is deposited in the special checking account n If amounts on checks do not agree with the balance in the special account, there have been alterations or unauthorized checks prepared n Any balance in the account will correspond to the sum of outstanding payroll checks CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12 -4

3 PAYROLL BANK ACCOUNT 1 1. Prepare the check stub. 2. Prepare the check. page 356 2 üA check for the total net pay is written on the general checking account and deposited in the payroll checking account CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12 -4

4 EMPLOYEE’S PAYROLL CHECK 1 2 page 357 1. Prepare the check stub of each employee’s payroll check. 2. Prepare each employee’s payroll check. ØThe information used to prepare payroll checks is taken from a payroll register ØA special payroll check form is used that has a detachable stub for recording earnings & amounts deducted CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 12 -4