On our bank rec - we have a few outstanding payroll checks from prior years that have never been cleared

Question

How can I reissue those checks in the new 2016 company? My controller has 5 payroll checks (dated 2010, 2014, 2015 year) that have never cleared our bank. He is asking me how we can void those checks and reissue them in the current company. I have reissued checks withing the SAME year but never outside of the year they were paid.

Char DeLange · Answer

Post a journal entry in the current period to write off the individual net check amounts. 
Debit the checking account and credit an expense account or liability account (if you need to show it as money due) 
Technically I believe the funds are supposed to be sent to the state as unclaimed money for the individuals. But I don't know anyone who does that. 
Check your CPA or tax advisor on how to proceed

Sage Construction & Real Estate

On our bank rec - we have a few outstanding payroll checks from prior years that have never been cleared

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