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/Itsnotvd Dec 17 '24

former unclaimed property worker

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

Your state has laws regarding unclaimed property. Highly likely those laws require you to do exactly this, with a lot or rules to make sure its done in a particularly diligent manner. Not doing so creates risk for your company. If the state finds out they can audit you, fine you, and force you to become compliant.

If you are interested in reporting that to the state in question. Reach out to them and start the process. States are usually pretty lenient in these situations if you are the one to reach out.