How to Answer: Would you ever pay an employee through accounts payable rather than payroll?
Advice and answer examples written specifically for a Payroll Specialist job interview.
34. Would you ever pay an employee through accounts payable rather than payroll?
How to Answer
This may be a challenging or 'trick' question since employees should be paid through payroll; however, a contractor can be paid through accounts payable (A/P) as a way for the company to write their fee off as an expense. Tell the interviewer that you understand the different circumstances that may arise when considering A/P to pay someone for their work or services.
Written by Christine Pasqueretta
1st Answer Example
"From my experience, I have only paid contractors through A/P and permanent employees through a regular payroll cycle. There are certain labor expenses that are better handled through accounts payable than through payroll. In this particular scenario, I would ask a range of questions before running a labor-related expense through A/P rather than a usual payroll run."
Written by Christine Pasqueretta
2nd Answer Example
"There are several times when I have used A/P to compensate a temporary or contracted associate versus utilizing payroll. All of our contractors on 1099s are compensated through A/P. Anytime we hire a vendor to do work for our organization, we invoice and pay through accounting, not payroll."
Written by Rachelle Enns on March 6th, 2021
1st Experienced Example
We use the A/P system to create manual checks if an employee is paid incorrectly. In these situations, we carefully record the information in payroll, as a line item, so our taxes are still recorded properly, and the information is reflected accurately for the employee's W2.
I have also used A/P when giving an employee a loan. This is very rare and approved by the CFO before it can occur. But a loan is paid back with interest. It is not income that should be taxed so it does not belong in the payroll system.
Written by Carrie Nelson on October 28th, 2022
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