Companies may use a special bank account solely for the purpose of paying employees,by depositing an amount equal to the total employees' net pay into the account each pay period and drawing the employees' payroll checks on the account.This account is a(n):

Question

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This special bank account is specifically used for paying employees, and the employer deposits the total net pay for all employees into the account each pay period. This is known as a payroll bank account. None of the other options accurately describe this type of account.

Companies May Use a Special Bank Account Solely for the Purpose