Payroll Tip-What’s Your Responsibility for Unclaimed Paychecks?
Unclaimed or returned paychecks are a real hassle; just ask any bookkeeper, especially one in the construction industry. They mess up your bank reconciliations because they are always outstanding; and seriously, what are you supposed to do with them other than throw them in a desk drawer and hope you remember where you put them! Can the company keep the money? Can you just void the checks and be done with it? As a bookkeeper or business owner do you know what your responsibilities are for handling unclaimed or returned paychecks? The answer is pretty simple -- NO, you cannot keep an uncashed or unclaimed paycheck; believe it or not, you MUST turn them over to the state where that person last worked. Oh, it gets even better; you can…