Section+4

=Preparing Payroll Checks=

Payroll Bank Account

 * Payroll has its own checking account just for payroll. (Mrs. Sullivan)
 * Omni Import pays its employees with checks written on a special payroll checking account. (Rudy Ruiz)
 * A separate checking account for payroll checks helps to protect and control payroll payments. (Alex Roberts)
 * The exact ammount needed to pay the payroll is deposited in the special payroll checking account. (Abril Santoyo)
 * Payroll checks are drawn on the separate account, any balance in this account will correspond to the sum of outstanding payroll checks. (Jocelyn Camarillo)
 * If amounts on checks are altered or unauthorized payroll checks are prepared, the amount in the special payroll account would be insufficient to cover all the checks. (Jenna Jarnagin)
 * Since payroll accounts are drawn on the seperate account, any balance in this account will correspond to the sum of outstanding payroll checks. (Sarah Hill)
 * The check is deposited in the payroll checking account. (Chelsea Wagner)
 * Checks are written on a special payroll checking account. (Robin Hamilton)
 * Remember, Using a separate checking account for payroll checks provides internal control and helps prevent fraud (Jonathan Gibbons)
 * ~  ||~ Preparing a check for total net pay ||~   ||
 * Steps ||  || By ||
 * 1 || Prepare the check stub. The write the date of the check, the net pay amount, what payroll account you are using, the payment period, and calculate and record the new general checking account balance. || Jenna Jarnagin ||
 * 2 || Prepare the check from the information on the check stub. || Sarah Hill ||

Employee's Payroll Check

 * The information used to prepare payroll checks is taken from a payroll register. (Alex Roberts)
 * A special payroll check form is used that has a detachable stub for recording earnings and amounts deducted. (Abril Santoyo)
 * Employees keep the stubs for a record of deductions and cash received. (Jocelyn Camarillo)
 * The information used to prepare payroll checks is taken from a payroll register.(Jenna Jarnagin)
 * A special payroll check form is used that has a detachable stub for recording earning and amounts deducted. (Sarah Hill)
 * Employees keep the stubs for a record of deductions nad cash recevied. (Chelsea Wagner)
 * Employees keep the stubs for a record of deductions and cash recieved. (Robin Hamilton)
 * Each employee's check will equal the net pay minus the deductions for the pay period. (Jonathan Gibbons)




 * ~  ||~ Preparing an employee's payroll check ||~   ||
 * Steps ||  || By ||
 * 1 || Prepare the check stub of each employee's payroll check. Enter information from the payroll register. || Chelsea Wagner ||
 * 2 || Prepare the each employee's payroll check payable for the amount of net pay for pay period. Rick E. Selby's net pay for the pay period ended December 15, 2012, is $903.03 || Rudy Ruiz ||

Electronic Funds Transfer (EFT)

 * A computerized cash payments system that uses electronic impulses to transfer funds is known as electronic funds transfer. (Rudy Ruiz)
 * Some businesses deposit employee net pay directly to each employee bank account by using EFT. (Alex Roberts)
 * When EFT is used, the banks computer deducts the amount of net pay form the business's bank account and adds the amount to each employee bank account. (Abril Santoyo)
 * Under this system, each employee receives a statement of earnings and deductions similar to the detachable stub on a payroll check. (Jocelyn Camarillo)
 * The payroll must still be calculated, but individual checks are not writted and do not have to be distributed. (Jenna Jarnagin)
 * Under this system, each employee receives a statement of earnings and deductions similar to the detachable stub on a payroll check. (Sarah Hill)
 * Some businesses deposit employee net pay directly to each employee bank account. (Robin Hamilton)
 * When EFT is used, the banks computer deducts the amount of net pay from the business's bank account and adds the amount to each employee bank account. (Chelsea Wagner)
 * A computerized cash payments system that uses electronic impulses to transfer funds is known as electronic funds transfer (Jonathan Gibbons)

**13.4 Review**

 * 1) //Why does Omni Import have a separate checking account for payroll checks?//
 * 2) //What is the source of the information that is recorded on each employee's payroll check stub?//
 * 3) //How do payroll procedures differ for an employee who requests that her pay be deposited through electronic funds transfer?//