# Separate bank account for payroll?



## plazaman (Apr 17, 2005)

do anyone of you guys use a separate bank account just for pay roll aside from your regular operating account?


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## kubie (Oct 19, 2008)

yes we have a separate account for payroll/taxes/accounting

dont know why, just the way our accountant wanted it


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## loneframer (Feb 13, 2009)

When I had a crew, I had a separate account for payroll.

Now, I'm the sole employee of my company and use a payroll company.


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## BamBamm5144 (Jul 12, 2008)

I have a separate account that I use to put the taxes away in, other than that the payroll comes out of the same account.


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## RobertCDF (Aug 18, 2005)

I use a payroll service and they open a new account for each client, the advantage is if anyone tries to make checks or draw on that account it has no money in it (they deposit the exact amount needed for the payroll checks) leaving your main business checking account number open for employees may not always be a good idea.


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## tedanderson (May 19, 2010)

I agree. A GC that I do work for had his general account compromised when a sub decided to modify his check and add an extra digit to the amount. The GC caught the fraud and the guy got hammered but it still screwed things up for him.


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## BamBamm5144 (Jul 12, 2008)

tedanderson said:


> I agree. A GC that I do work for had his general account compromised when a sub decided to modify his check and add an extra digit to the amount. The GC caught the fraud and the guy got hammered but it still screwed things up for him.


How does that happen? Are these handwritten checks or computer generated regular payroll checks. Mine are printed right off the computer and of there are any changes to the check, the bank doesn't cash it.


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## country_huck (Dec 2, 2009)

I keep a separate account for taxes and payroll keeps it nice and safe


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## Clarke Carpentry (Apr 22, 2011)

tedanderson said:


> I agree. A GC that I do work for had his general account compromised when a sub decided to modify his check and add an extra digit to the amount. The GC caught the fraud and the guy got hammered but it still screwed things up for him.


That's got to be one of the dumbest moves I've ever heard of.


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## rkh (Jan 7, 2012)

I had an employee who decided to pay his bills using my checking account info.... Needless to say, he's no longer with me & I did press charges. Now, I'm back to working solo


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## Mud Master (Feb 26, 2007)

Absolutely have a separate account for payroll.

Every 2 weeks I write a check out of general and deposit it into payroll for the next two pay periods. 

Subs and bills get paid out of general though,unless the project is over $150,000, than ill open a separate account for that project. My credit union works well with me for those things.

I have a 3rd account for my quarterly's as well.


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## GregS (Oct 1, 2006)

The only thing I ever write a cheque for is rent. 

Everything and everyone else is paid electronically. Payroll is a direct deposit to the employees account. 

Money comes out of mine instantly and there is no waiting for anyone to cash a cheque. 

Direct deposit is about $1.25 per employee per pay period. 2 employees is $5/month. No waiting, no wondering, everything is accurate.


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## wncbuilder (Nov 10, 2010)

GregS said:


> The only thing I ever write a cheque for is rent.
> 
> Everything and everyone else is paid electronically. Payroll is a direct deposit to the employees account.
> 
> ...


No "lost" paychecks or reprints either


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## DavidC (Feb 16, 2008)

We use a payroll company that writes our employees weekly checks and keep the tax deposits timely. It is a separate account for simplicity. We only deposit enough from the general account to keep them covered.

Good Luck
Dave


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## jimmys (May 1, 2009)

No
Jim


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## cabinetsnj (Jun 10, 2012)

plazaman said:


> do anyone of you guys use a separate bank account just for pay roll aside from your regular operating account?


Yes for accounting purposes I think it would be best to have an operating account and another account for payroll and taxes. This is how we have it setup and works well for us.


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