Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Connect with and learn from others in the QuickBooks Community.
Join nowHello,
I have several Payroll Checks issued to employees in 2021, 2022, 2023 but they were never cashed. Now they have been sitting in the reconciliation window and I would like to know how to clear. Since those periods were filed/paid in terms of taxes I assume a Journal entry would be needed, what are the steps to clear?
Hi there, @CCS77.
Let me provide information about your payroll checks in QuickBooks Desktop (QBDT).
If an employee fails to collect or cash their paycheck, you must report and turn it over to the state after a certain period of time.
As an employer, you should do the following:
Additionally, as an employer, you shouldn't void the unclaimed employee paycheck if the employee is still entitled to receive the money. The name on the paycheck should also not be changed to that of the state, and it must remain in the employee's name. Also, uncashed paychecks should be returned to the employer's checking account. It's crucial to understand that once a paycheck is issued to an employee, those funds no longer belong to the company in any way.
On the other hand, if you want to clear a payroll check without affecting the one that was already filed. Yes, you can create a Journal Entry. However, it's important to note that if you're not familiar with the debits and credits of your affected account, it's best to consult your accountant for more accurate information.
I'll add this article to guide you change your employee's information: Edit or change employee info in payroll.
Please let me know if you need additional help about clearing your payroll checks. I'm always here to help. Have a good one and stay safe.
@Clark_B You're seriously suggesting that the OP should force not only the company they're working with, but every relevant employee, to file amended tax returns.
You should have led with 'talk to your accountant', not add it as a footnote.
Hi there,
I appreciate you for joining the thread. Let me clarify the steps given by my colleague and provide the correct information to ensure that clearing the prior year's payroll checks that were never cashed is handled efficiently.
Please note that once you process payroll checks and never cash, you're responsible to report it and turn it over to your state after a period of time. The state becomes the owner of the abandoned or unclaimed wages through the escheatment process.
Beforehand, you shouldn't do as an employer to void unclaimed employee paychecks as mentioned above. The employee is still entitled to this money. Also, change the name on the paycheck to that of the state. The paycheck must remain in the employee's name.
Then, you shouldn't performed the following:
Since you're unable to void those paychecks, I recommend making sure to check with your state for the state's escheat laws to figure out how you can clear the said entries in the Reconciliation window. You can refer to this article to see further details: Understand the process for unclaimed wages.
In case you need steps on how you can run a specific report that gives you the total payroll wages, taxes, deductions, and contributions, you can read this article: Create a payroll summary report in QuickBooks.
If you have any other payroll concerns or questions about managing employee's data, please add a comment below. I’ll be here to help. Take care always!
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.