Re-issuing stale paychecks from a previous closed year

Thank you for reaching the Community, Union Treasurer.

Let me share an idea on how you can reissue an employee's paycheck in QuickBooks Desktop.

You can create a dummy check (not a paycheck) to account for the paychecks that were never cashed, and then void it to balance your check register. This way, you can reissue the paycheck to your employee with the current date.

Like this:

1. Modify the employee's paycheck in the register with the next available check number (take note of original paycheck number), and click Save and Close.
2. From the Write Checks screen, create a check payable to the employee.
3. Put the current date on the check.
4. Enter the net amount.
5. Enter the same check number (the new check number) entered on the modified lost payroll check.
6. Click Save & Close.
7. Print the check and issue to the employee.
8. Change the check number on the Write Check screen to the original paycheck number.
9. Void the Write Check (do NOT void the original paycheck) in the bank register.

I've added this link for more information about reissuing a paycheck: Issue a lost paycheck

For future reference, you can visit this article and learn more about printing your paychecks in QuickBooks Desktop.

Come back to us if you still have other concerns about payroll. I'll be here to check on your response. Have a good day!

The important things here are to

- create a check for the net pay for a more current date and

- make the net bank activity 'balance' so that you can reconcile.

- document the case.

Here's a way do to it:

1. Create a standard (non paycheck) check for the current date.  Use the employee name, and enter the net pay. In the expense account field, use the same bank account you're writing the check from. You may be a warning asking you to confirm.

2. Record and print or hand-write the check. When you review your register, you'll see the check twice, once as a check and once as a deposit, so in the end it has no impact on your account balance.

3. Optionally, complete a pretend reconcile, where the beginning and ending account balances are the same, and marking off only the original paycheck and the "deposit" part of the new check, for a net change of 0.00.

4. Optionally, add comments to both the original and new checks describing what you did.

I’m not reissuing the stale paycheque. The employee quit but never cashed the final paycheque. How would I handle this.

The employee quit but never cashed the final paycheque. How would the paycheque be removed from the bank rec without affecting closed period.

There is a way to handle the uncashed paychecks, and I'm here to guide you and ensure we're using the correct approach to do this.

It's technically possible to remove it from the bank register. However, we do not recommend this since it will significantly impact your financial history and payroll records.
 
I also noticed you used the spelling "paycheque" in your post. If you're based in Canada, we have a dedicated Community site for your region.

You can visit this link to get assistance that aligns with Canadian regulations as well as best practices for managing uncashed paychecks:

https://quickbooks.intuit.com/learn-support/ca-quickbooks-community/misc/03/community-ca.

If you're in the USA, you're required to report any uncashed paychecks and transfer them to your state after a specified period. This process is known as escheatment and has different guidelines by state. Make sure to familiarize yourself with your local regulations.

Aside from that, here are a couple of things that you can do as an employer:

1. Retain the uncashed check for the employee to claim for a specific duration, typically ranging from 1 to 5 years, before considering submitting it to the state.
2. Reach out to your employee before you report any abandoned or unclaimed wages.
3. Contact your state agency to find out what to do with the employee pay in your locality.

More details about this topic are thoroughly discussed here: Understand the process for unclaimed wages.

For the most accurate and up-to-date advice on handling uncashed paychecks, it's highly recommended to consult with your accountant or a payroll professional. They can provide guidance and instructions that are specific to your situation to ensure you're following all relevant regulations.

Lastly, I'd like to share these articles in case you need more payroll-related references:

• Fix incorrect pay period dates on paychecks
• Set payroll preferences in QuickBooks Desktop Payroll

Remember, we're here to help if you have more questions while managing payroll transactions, employee information, or reconciliation tasks in QuickBooks. We’re always glad to help.