Page 256 - Essentials of Payroll: Management and Accounting

Payments to Employees
of cash on hand for payroll may be stolen. To make cash payments, fol-
low these steps:
1. Calculate the amount of gross pay, deductions, and net pay due
to each employee. This can be calculated manually or through
the use of payroll software.

2. Write a check to the local bank for the total amount of the payroll
that will be paid in cash. This check will be converted into cash.

3. Determine the exact amount of bills and coins required to pay each
employee; the form used in Exhibit 9.2 can assist in this process.

To use the form, list the net pay due to each person in the second
column, then work across the form from left to right, listing the
number of the largest denominations allowable that will pay each
person. For example, to determine the exact number of bills and
coins required to pay the first person in the form, John Anderson,
determine the maximum number of $20 bills that can be used,
which is six. His net pay is $129.12, so six $20 bills will reduce
the remainder to $9.12. The next largest useable denomination
is the $5 bill,of which one can be used,followed by four $1 bills.

This leaves coinage, of which one dime and two pennies are
required to complete the payment. Then cross-foot the form to
ensure that the bills and coinage for all employees add up to the
total amount of the check that will be cashed at the bank.

4. Highlight the totals row on the form. Take the completed form
to the bank, along with the check, and requisition the correct
amount of each type of currency.

5. Obtain a set of pay envelopes, which can be simple mailing
envelopes with a stamped, fill-in-the-blanks form on the outside.
An example of this stamp is shown in Exhibit 9.3. This stamp

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