Practice 34 Payroll Specialist interview questions covering compliance, tax regulations, and payroll systems.
Question 20 of 34
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Christine Pasqueretta is a human resource and recruitment professional with experience creating, developing, implementing, leading, and measuring HR impact initiatives.
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.

Christine Pasqueretta is a human resource and recruitment professional with experience creating, developing, implementing, leading, and measuring HR impact initiatives.
"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."

Rachelle Enns is an interview coach and job search expert. She works with candidates to perform their best in employment, medical, and post-secondary admission interviews.
"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."

Carrie is a Human Resource and Payroll consultant with 25 years of experience.
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.
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I do know that a number of different types of payments and expenses are processed using accounts payable. However, in this particular situation, I would have to seek out assistance from a leader, ask a range of questions before making this decision. I do believe that any number of extenuating circumstances would cause me to need to pay an employee through accounts payable.

Stephanie's Feedback
It sounds like this is a potentially tricky situation, and it's great that you illustrate your knowledge about payroll vs. accounts payable, while also acknowledging the need to check with a supervisor.
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Written by Christine Pasqueretta
34 Questions & Answers • Payroll Specialist

By Christine

By Christine