A simple definition of what you should know about pay in slip

By Kishana Citadelle
Published: 11/30/21
definition backgroundA simple definition of what you should know about pay in slip

Papers and more papers! Everything is papers. But yes, they are very important. They prove that agreements were made thanks to signatures, and serve as reassurances for parties involved. You want to go to a bank, but you are afraid or simply do not know what to do when depositing cash or checks, well, this article is for you.

Rest assured that it is as easy as your ABCs, so much so that you’ll be depositing pay in slips without a hassle in no time.

What is pay in slip?

A pay in slip or, as known as deposit slip by Americans, is a document or small form which relates to bank transactions. It relays details of the date, account number, deposited amount (cash or check), and the name of the account holder. The pay and earning statements can have different codes, but the article will help you understand the pay in slip.

It is given by the bank to a person when they are about to deposit money into their account. And, vice versa, it is given back to the bank teller by the person once they have filled in the date, amount and signature line.

Every pay in slip has a counterfoil, which is returned to the depositor once the bank clerk signs it.

How is pay in slip used?

Pay in slip are used when someone goes to a bank because they need to deposit money into their bank account. When entering, they either spot a stack of pay in slips or, they speak to the bank clerk and tell them about the operation they want to do.

Once it is said, they are handed a pay in slip with the required information to fill in. The pay in slip is given to know whether the depositor has or prove if they have an account number, which is usually situated at the bottom of the slip. They enter the date, account number they choose or wish to deposit the money, the amount and details of said deposit. It gives the bank clerk indication to whose account the money is about to be credited.

Some deposits can be made by check, and the depositor will then register each check with a check number and the total of the deposit or if the person who’s depositing wants cash back from the check. Though, you must know that you must singly list each check so that each of them appear on their own line with a space to write the amount for each to keep track of each.

After filling in the pay in slip, the clerk will then verify if what the depositor wants to deposit or receive back from the check matches with the funds received or have in the case of the check.

Furthermore, if you are depositing more than one, it is recommended for you to use the back of the pay in slip or ask the bank employee to guide you if you aren’t sure of what it means. Most of the pay in slips have extra boxes printed on the back not to have you fill in your information repetitively and deal with numerous subtotals.

Filling out a deposit slip

Here is an in-depth explanation of what you need to do:

1. Enter your personal information

Simply start by writing your name, your account number on the pay in slip. But, if you have the pre-printed pay in slips already in your checkbook, then this information is already filled in for you.

2. Fill in additional information

Write the date, and any empty line if it is required. It is in the case, for example, if you are a Western Union member at a different branch of the company, then you must state or include which branch you are from. Basically, your home branch.

3. Put the amount you want to deposit

It corresponds to the currency, total amount of bills and coins you wish to deposit. And of course, whichever you do not have, you are to leave blank.

4. Individual listing of checks

Add the check number and separately add the amount of each and if you do not have to deposit a check, then fill in the subtotal.

5. Addition of the deposits for the subtotal

Not great in the mathematical field, no worries, it is simply the sum of the checks and cash you will have to deposit.

6. Fill in the amount of cash to withdraw

It is necessary only if you wish to get some cash back from your deposit or if your deposit consists of checks, it is simpler to take the money on the spot instead of coming back at a later time to withdraw.

7. Calculate the total of the deposit

You do it with the sum of deposits by subtracting it by any cash you take.

8. Signing the pay in slip

You have to sign the pay in slip if you plan to get cash back from your deposit.

Finally, if all is well, the bank teller will then print out a copy for the depositor.

What does a pay in slip contain?

A pay in slip will indicate the required information to be filled out. It contains:

  • The name of the account holder,
  • account number,
  • the type of deposit (checks, cash or cash back),
  • a recap of the deposit made (especially for business purposes),
  • tax.

Why is a pay in slip beneficial?

Pay in slips are important for the record keeping of payments made into accounts. And it is significant to keep it as a form of insurance and guarantee for the bank to know who deposited money into an account, the amount and when, etc.

And the copy that the depositor was given as well, is their receipt, which is evidence of the amount they gave the bank. It helps to spot any errors that may arise and if the exact amount was deposited.

In addition, in case you need proof for clients and customers that you have paid the right amount, show them the pay in slip.

Is a pay in slip use mandatory?

A pay in slip signature is only needed when you wish to take cash back from the deposit. If it is only funds deposits, then you don’t need to sign the pay in slip.

Finally, a pay in slip is a document you use to fill in with your personal information to avoid any misunderstandings and disagreements. The depositor hands the slip they have filled out to the bank teller, and the latter gives the copy back with the stamp of the bank to the former. It is the proof of the funds deposited and a form of assurance for both parties.

I hope that this really answered the questions you had, and helped ease some of that doubt. Now, on to your deposits. And don’t forget to come back for more related articles or leave a comment.

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