PAYROLL ACCOUNT

PAYROLL ACCOUNT

Payroll or Salary accounts for the employees of an organization are basically opened as per the request and contract of an employer with the bank, for the purpose of their employees’ salaries distribution through the bank, from the organization concerned account to the concerned employees’ salaries accounts. For opening of payroll accounts an organization shall request to the bank and sign the contract. Beside the contract the organization shall also signed the terms and conditions for payroll accounts and should provide a list of their employees.

The Payroll Accounts are to be opened in nature of current account but the class of account is different as there are some differences in maintaining of salary account and current individual accounts, like the minimum balance and closing charges are not required in payroll accounts.