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Accounting, Payroll & Pension Issues/Accounting
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Question
Why would a company want a separate bank account for payroll?
It is a good idea to separate your payroll liabilites from the rest of the company business.
For example the Department of Labor wants items such as 401k contributions separated, taxes and reconciling payroll are other reasons.
You can avoid legal and regulatory problems by setting up a separate payroll account.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Ed McFarland
Expertise
Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience
Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Education/Credentials
MBA
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