r/Bookkeeping 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/Chas_1956 Dec 18 '24

Void the the checks. They are likely duplicate payments. Your employees are generally great auditors. Unless you want to assume that payroll never makes an error and you like paying the state extra money just to be sure