Handling Unpaid Payroll Checks Can Be Tricky

Handling Unpaid Payroll Checks Can Be Tricky.  A wrong decision by an employer handling unclaimed or uncashed payroll checks can result in serious trouble for the company. There are issues to consider in dealing with these types of checks.
When determining how to handle an unclaimed or uncashed payroll check, you need to review state law, the accounting for any voided checks, and W-2 issues, including Social Security and unemployment benefits.

Each state has its own laws for unclaimed property. And there are specific rules for the accounting of a voided check. After a reasonable time, void the check and move the funds to an escrow account pending claim by the employee or submission to the state. Once the check is issued to pay the employee for his services, the money no longer belongs to the employer. Under no circumstances should the funds be returned to the general checking account.

Medicare, Social Security and unemployment taxes must be paid as if the employee had indeed claimed the check.

Vision HR helps you handle unclaimed or uncashed payroll checks properly so that your firm isn’t subject to potentially substantial penalties. Our clients don’t spend time on this issue and are in full compliance.  Call us today if you need help with your unpaid payroll checks, payroll or want to change your payroll provider. (877) 641-0012

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Vision HR offers Payroll Services in Palm Coast, Bunnell, St. Augustine, Palatka, and surrounding areas.