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tax account
Posted by Anonymous on 04/01/2009 - 15:38
My goal- to get the tax money for payroll out of our main checking account weekly, instead of waiting to pay it when due. Is it okay to set up a bank "checking" account for this to keep money separate without actually opening an account at the bank? Like a holding account,and then transfer it back to main account when the payment is due.
Jean
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payroll tax
Yes, you can certainly make an account in your software and "transfer" money into it each time you do payroll. You are not required to have an actual bank account open at a bank in order to have an "account" in your software. Just make sure that you remember it's there when you transfer money over, and have to do the bank reconciliation before you transfer it back to make the tax payment. You don't even have to call it a "Checking"account in your software - you can name it "payroll tax account" if you like, it can still be a bank type account.