escheatment

Hi, Jfarias.

It's important to handle this process carefully to ensure compliance. At this time, we do not advise making any changes to your QuickBooks records regarding these paychecks.

We recommend waiting for specific instructions from the state on how to manage and report these funds. Once the paychecks are turned over to the state, they will handle cashing the checks and holding the funds for the employee.

If you have additional questions or need further guidance, please don’t hesitate to reply. 

@Aldren18 

Your customer is asking how to record this in QB, and your suggestion is to have them get instructions from their state?  Yikes.  

@jfarias123 

To return the funds to your bank account, create a deposit dated 2026 for the net/gross of the paycheck as required by your state.  Assign the appropriate wage expense account (the same one used for the uncashed paycheck) to the deposit.  Then, issue a check in QB to the state and assign the same wage expense account to the check that you assigned to the deposit.  The deposit and check will offset, the state will have the funds, and you should be good to go.