How to handle bounced payroll checks with bank? November 2, 2009
Posted by Banking in : Other - Business & Finance , trackback
The company I work for has bounced some paychecks (not mine). Since I am the office manager the individuals have asked me to write checks to their banks explaining that the bounce check is due to the company issues not of their own. Will this help clear up their records at the bank?
Thanks Inspector, unfortunately it has been more than once or even twice for some of the employees. Any suggestions on what the letter should state?
By: julierollence
About the Author:
Thanks Inspector, unfortunately it has been more than once or even twice for some of the employees. Any suggestions on what the letter should state?
By: julierollence
About the Author:
Comments»
I think Writing a letter, or a phone call to the banks would certainly help your employees. And they will be grateful for your help.
If the bounced checks are due to honest errors and unlikely to be repeated, then go ahead and do it.
If your company is in trouble and bouncing checks are going to be in your future – then I suggest you brush up your resume and start looking for the escape hatch.
Really, the employees banks will not care why the check bounced, they will still charge the employee fees for the bounced checks.
Your company really should:
a) pay any and all bounced check fees
b) pay any and all fees that were a result of payroll checks not being deposited (i.e. if an employee issued a check that bounced because their payroll checks did not clear).
Maybe you should get your company to have direct deposit.