Final answer:
Individual payroll checks are usually written from a special payroll checking account. This account simplifies the payment of employee wages and the management of payroll taxes, keeping payroll separate from other business expenses.
Step-by-step explanation:
Individual payroll checks are usually written from a special payroll checking account. This type of account is specifically set up to handle payroll and related tax payments. Employers use it to separate payroll from other business expenses, which simplifies accounting and tax reporting. When employers issue payroll checks, funds are transferred from the company's regular checking account into the special payroll account, and payroll checks are drawn from there. Payroll taxes, which include deductions from an employee's wages like Social Security and Medicare, and also taxes paid by the employer, are often paid from this same account.
Using the special payroll account ensures that there are always enough funds to cover payroll obligations, and it helps employers track payroll expenses and comply with regulatory and tax requirements. It is worth noting that banks offer various accounts like savings accounts and checking accounts, which might have some overlapping features, but a special payroll account is specifically tailored for payroll purposes.