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Employee doesn't want to cash reimbursement check

We have a couple of old outstanding checks that are less than $10 where the employee decided that going to the bank to cash it is too much of an inconvenience and has even requested we just void the check and keep the money.

The money is rightfully owed to them. What is the right protocol here? Just void it, take a credit for the original expense and call it a day? Abandoned property?

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

Hi Anon
Take all the checks back-cancel them. Add the refund amount to their paychecks and move on.
Stop issuing checks to employees in future.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

As a policy, you might want to consider establishing a good ole fashioned Petty Cash Fund and set a minimum amount for check payments/preparation...be it $25, $50 or $100 depending on your expense experience.

As a personal principle, I never ever ever let employees get the short end (or even the appearance of getting the short end) of a transaction....no matter the amount.

In this case? (In a small company) I would even got the $10 check and gave him/her the $10 from my OWN pocket. I would just find a way to get the $10 back from the company at a later date..

Brian Sterling
Title: VP Finance
Company: Gift Services
(VP Finance, Gift Services) |

Many states require that uncashed checks be submitted to them as forfeited property. I would suggest that you if you do cancel the checks and pay them as both Len and Emerson suggest, just document that the cancelled check was paid to the employee in a different way.

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