How to Handle Unclaimed or Uncleared Checks

Unclaimed wages, salaries, commissions and similar items in California are governed by the State Controller's Office. Once such property has remained unclaimed for one year, it must be reported to the state. Additionally, all holders of unclaimed property are required to review their records annually to determine if they are holding any property that has remained unclaimed for one year.

For more information, see the California State Controller's Report Unclaimed Property Page.

Each state has it's own process for reporting unclaimed property. Please check your state website to determine what that process is.

The instructions provided below will walk you through the steps of how to handle an unclaimed or uncleared check within Datatech Software.

Step 1: Mark the Unclaimed Check as Not Picked Up

1. Go to Payroll > Employee. In the Account # field, enter the employee's account number or use the look-up button to locate and select him.

2. In the Last Check #/Date field, click the look-up button. This will open the View Finalized Payroll Check window. The last check issued to the employee will be displayed. If this is the not the check in question, use the left-facing blue arrow to scroll through previous checks.

3. Once you have located the check, select the Check Not Picked Up checkbox.

4. Click Save.

Click the image to watch these steps.

If you use pickup lists for your payroll checks, you can also indicate the check was not picked up through the Payroll Check Pickup List window.

5. Go to Payroll > Checks > Payroll Check Pickup List.

6. Enter a Starting and/or Ending Date. The Not Picked Up option should be selected by default.

7. Click Add Check.

8. Enter the check number or select it using the look-up button.

9. Add any notes.

10. Click Add to List.

Step 2: Make an Adjustment in the Checkbook Through the Check Register

1. Set up a General Ledger account for unclaimed payroll checks if you have not done so already.

2. Go to Payables > Checkbook.

3. Click Expense Check.

4. In the Direct Expense Check window, enter a reversing entry for the amount of the unclaimed payroll check using the current date. In the G/L # column of the line item, enter the General Ledger account number you have set up for unclaimed payroll checks.

Step 3: Clear the Check from the Bank Reconciliation

1. Go to Payables > Bank Reconcilement.

2. Enter a Statement Date.

3. Right-click in the grid and select Order > Check # from the menu.

4. Select the Cleared checkbox next to the original check and the reversing entry. See the example below.

Step 4: Reissue the Unclaimed Check

To reissue an unclaimed check to the state or the employee, follow these steps:

1. Go to Payables > Checkbook.

2. While in the Checkbook Register window, click Expense Check.

3. In the Direct Expense Check window, enter the information for the replacement check.

• In the Description entry, be sure to include the original check number this check is replacing (e.g. Replacement for Payroll Check #2371).

• In the G/L # column of the line item, enter the General Ledger account number you have set up for unclaimed payroll checks.

4. After confirming all of your entries are correct, click Print to print the check.

5. Go to Payroll > Checks > Payroll Check Vouchers. Print a check voucher for the check and provide it to the employee along with the reissued check (this is not applicable if the check is being issued to the state).