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Experienced Member

Uncleared paychecks can't be cashed but employee should be paid

I have three year old uncashed lost paychecks that employee wants to be reissued.  If I voided them and reprint them with old dates the bank wouldn't cash them because of age. If I issue them today, I would have to correct the 941 report and state withholding as well as W-2 & W-3 for previous year.  I assume there must be GJE adjustments to payroll liabilities for previous year and current year.  I just don't know how to make them.  Do I increase the liabilities for previous original year since they were decreased when the paycheck was voided and then decrease the payroll liabilities for this year since the liabilities wh/ taxes, Medicare & SS taxes were paid in the original year and aren't really due again.

 

Or do I just issue a regular check for the net amount now and just keep seeing the uncleared paychecks on the reconciliation report?

 

 

Solved
Best answer 08-07-2019

Accepted Solutions
QuickBooks Team

Re: Uncleared paychecks can't be cashed but employee should be paid

Thanks for taking the time reaching out to the QuickBooks Community. @tensdr.

 

Let me share some details on how to reissue old lost paychecks to your employee. 

 

To avoid messing up with your books, what you need to do is, create a bank deposit so the payroll expenses affected by the paycheck will decrease the current year. It will also show on the bank balance that the check was still uncashed.

 

Once done, you can now write a check with the total net pay amount with the same account you've used from the bank deposited you've created. 

 

You may also consult an accountant if you’re not familiar with the process and to ensure your books are accurate.

 

Don't hesitate to click the Reply button below if you have any other questions about the payroll transactions. I'd be happy to answer them for you. 

4 Comments
QuickBooks Team

Re: Uncleared paychecks can't be cashed but employee should be paid

Thanks for taking the time reaching out to the QuickBooks Community. @tensdr.

 

Let me share some details on how to reissue old lost paychecks to your employee. 

 

To avoid messing up with your books, what you need to do is, create a bank deposit so the payroll expenses affected by the paycheck will decrease the current year. It will also show on the bank balance that the check was still uncashed.

 

Once done, you can now write a check with the total net pay amount with the same account you've used from the bank deposited you've created. 

 

You may also consult an accountant if you’re not familiar with the process and to ensure your books are accurate.

 

Don't hesitate to click the Reply button below if you have any other questions about the payroll transactions. I'd be happy to answer them for you. 

Experienced Member

Re: Uncleared paychecks can't be cashed but employee should be paid

Could I issue the check this year, adjust the liability accounts and then not include the paid employee in the annual 941, and state withholding year end reconciliation report?  We are a church so we don't have state or federal unemployment payments.

Experienced Member

Re: Uncleared paychecks can't be cashed but employee should be paid

Could I issue a check to former employee and then adjust the quarters liability accounts for taxes withheld?  I would then not include her on quarterly 941 report and state withholding reconciliation.  We are a church so we don't have unemployment payments.

Moderator

Re: Uncleared paychecks can't be cashed but employee should be paid

Hi there, tensdr.

 

The IRS has strict implementations when it comes to tax rules. It would be best to seek advice from your accountant or tax adviser about making adjustments to your tax liabilities.

 

We can also let the Community members to join in to this thread so they can give their opinions.

 

Let us know if you have any payroll questions. We are here to help.