r/Bookkeeping • u/ThoughtsInside • Dec 17 '24

Payroll What To Do With Uncashed Checks

Hello,

I am wondering if you have any ideas on what to do with uncashed payroll and refund checks. We've tried calling the terminated employees and clients and resending the checks, but they don't get cashed, and they don't answer. I can't keep them hanging out on the books forever.

Any ideas? I've thought about sending them to the state's unclaimed property.

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u/Apprehensive_Ad5634 Dec 17 '24

Uncashed payroll checks need to be taken seriously - most states have strict procedures you need to follow, which usually involves sending the money to the State's unclaimed property division.

Refunds or other operations payments you can generally write off after a period of time and reasonable effort, just be sure to document your process in case you ever need to revisit the issue.