If a company uses a special payroll bank account:

Question

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When a company uses a special payroll bank account, they would typically draw one check for the entire payroll on their regular bank account and then transfer the sum to the payroll bank account, from which they would issue the paychecks. This helps to ensure that the funds are segregated and that there is greater control over the payroll process. It does not impact the need to issue W-2's or maintain a payroll register, nor does it require the use of a federal depository bank.

If a Company Uses a Special Payroll Bank Account