Lost Payroll Check

[emarino]

In Q2 I noticed a payroll check was outstanding from Q1. The employee lost the check and the taxes had already been paid. I was not sure of the best way to handle this, but I decided to void the check and reissue a new check in the payroll system. This almost worked. The GL accounts looked fine, but now I'm seeing that the payroll quarterlies are not right. Even though I voided the check in Q2, the void in the payroll system shows in Q1. I'm not sure what to do at this point other than manually adjust the payroll reports (I don't want to start reversing reversals, which could get pretty messy). I think if I had this to do over again I would issue the net amount of the check from the AP system, but wouldn't it be better if the payroll system showed the void in the period the check was actually voided. I'm almost positive the AP system handles it that way.

Ed Marino
Business Administrator
Pepperell Christian Fellowship
Pepperell, MA

[NeilZ]

In Q2 I noticed a payroll check was outstanding from Q1. The employee lost the check and the taxes had already been paid. I was not sure of the best way to handle this, but I decided to void the check and reissue a new check in the payroll system. This almost worked. The GL accounts looked fine, but now I'm seeing that the payroll quarterlies are not right. Even though I voided the check in Q2, the void in the payroll system shows in Q1. I'm not sure what to do at this point other than manually adjust the payroll reports (I don't want to start reversing reversals, which could get pretty messy). I think if I had this to do over again I would issue the net amount of the check from the AP system, but wouldn't it be better if the payroll system showed the void in the period the check was actually voided. I'm almost positive the AP system handles it that way.

Ed Marino
Business Administrator
Pepperell Christian Fellowship
Pepperell, MA

The void and reversals are in Q1 because that was when the check was issued. Did you write a new check for the employee? If so, when did you date the check?

The AP system works differently, as it doesn't have to include deductions for taxes, thus increase the liability accounts, etc.

[emarino]

Yes, I did replace the check and I dated the reissued check for the date I cut it. Should I have dated it for same date as the original check? This would probably make the payroll reports come out right, but the date on the check wouldn't agree with the GL posting month. I don't know if there is a clean way out of this. The taxes make it complex. I have always dreaded this happening and I hope it never happens again (particularly over a year-end).

[Jeff]

Since you are replacing the check, it is easier to date the void as the same date as the reissued check.

This is what the program does when you are reissuing a check. To reissue a check in version 11, select the check from the check history tab on the employees record. Select the void option and you will have an option to reissue the check. When you select reissue, the void entry will be dated the same as the reissued check.