A payroll clearing account is used to
A)check the accuracy of payroll costs.
B)speed up payroll transaction processing.
C)reduce the transaction costs associated with payroll transaction processing.
D)eliminate the need to manually record payroll transactions.

Question

Quizplus · Accepted Answer

A payroll clearing account is used to check the accuracy of payroll costs. This account acts as a temporary holding account into which all payroll transactions are recorded before they are posted to individual employee accounts. By reconciling the amounts in the payroll clearing account with the actual payroll costs, discrepancies can be identified and addressed, ensuring that the payroll is accurate. The other options are not the main purpose of a payroll clearing account.

A Payroll Clearing Account Is Used to