An account that is used to temporarily accumulate activity, then is periodically zeroed out as the activity is subsequently transferred to other accounts or otherwise distributed. For example, a payroll clearing account is use d to accumulate amounts withheld from employee paychecks. These withholdings are then remitted in lump sums to the appropriate payee, such as the IRS for Federal withholding taxes, and the Arizona Department of Revenue for State withholding taxes.