© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO8 Justify the use of a payroll checking account. LO9 Prepare employee payroll checks.

© 2014 Cengage Learning. All Rights Reserved. Payroll Bank Account ●A voucher check has a detachable check stub, or voucher, that contains detailed information about the cash payment. SLIDE 2 LO8 Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Payroll Bank Account SLIDE 3 LO8 Lesson Prepare the check stub Prepare the check from the information on the check stub. Date Description Amount Payee

© 2014 Cengage Learning. All Rights Reserved. Employee’s Payroll Check SLIDE 4 Lesson 12-4 LO Prepare each employee’s payroll check payable for the amount of net pay. 1.Enter earnings information from the payroll register and the employee’s time card. 2.Enter the YTD Total Earnings from the employee earnings record. 3.Enter the employee’s current deductions from the payroll register and record the total. 4.Add each current deduction amount to the YTD amount reported on the employee’s prior check stub and record the total. 5.Total the Current and YTD deductions columns. Calculate and enter the amounts for Current and YTD net pay.

© 2014 Cengage Learning. All Rights Reserved. Electronic Funds Transfer ●The payment of an employee’s net pay using electronic funds transfer is called direct deposit. SLIDE 5 Lesson 12-4 LO9

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 1.Why does ThreeGreen have a separate checking account for payroll checks? SLIDE 6 ANSWER 1.A separate checking account is used to help protect and control payroll payments. 2.Payroll checks require space to record earnings and deduction information. Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 2.What is the source of the information that is recorded on each employee’s payroll check voucher? SLIDE 7 ANSWER The payroll register, employee earnings record, and prior pay period paycheck stub Lesson 12-4

© 2014 Cengage Learning. All Rights Reserved. Lesson 12-4 Audit Your Understanding 3.How do payroll procedures differ for employees who request direct deposit of their pay? SLIDE 8 ANSWER Each employee’s net pay is deposited to his or her bank account. Individual checks are not written and do not have to be distributed. However, each direct deposit employee will receive a printed or electronic statement of earnings and deductions that supports the amount deposited. Lesson 12-4