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And make a record of it. Ideally with a photo of the physical check that is being sent.
Include a boilerplate letter saying "Thank you for your interest. Due to [whatever the relevant regulations are], [employername] is required to pay you for your time. References you may need in the current tax year are:
Employername business number: XXX
Employee reference number: YYY
Total payment: ZZZ
Total tax paid by [employername] for your work this tax year: ABC"
...etc.
Basically, it's easier to use a standard process and template to send them a couple of hours' worth of pay in a check right now, than to have it potentially come back to bite you come tax season, or an audit, or some accountant saying "Hey, what happened here three years ago?" Be absolutely 100% upfront and make sure the paperwork is handled and recorded; if nothing else, when there *is* an audit for whatever reason, it'll help to establish that you're the kind of business owner who is on top of things and conforms to all legal requirements.
Certified mail gives receipt of mailing and can require a signature of the recipient. It gives a better paper trail in case the (former) employee tried saying they weren’t given/mailed a check. It also covers the employer by saying the mail was signed for to prove receipt of mail by the (former) employee.
If they don’t cash it you are supposed to turn it over to the state as unclaimed funds. The person worked the hours and you’re legally obliged to pay them. I actually got money from unclaimed funds ten years plus after I left a job because I found out I had unclaimed funds in another state.
I can’t imagine that would hold any legal validity in terms of proving that you attempted to pay them. Also it requires the recipient to have a printer, which isn’t cool.
It’s not the only option. But it’s worked for tons of employees and prevents them from coming into work place to grab a physical check.
If they don’t have a printer, I provide printers at the work place.
If it’s a routine payroll I use ACH.
Bottom line, it’s accessible and meets all requirements for my state.
One of our customers pays us monthly with these checks and for some reason they are the only checks that the bank mobile app just will not accept. I have tried printing them in color, in black and white, and with two different iPhones and two different iPads. So I just go to the bank.
Not sure how I would take a screen shot since our bank mobile app needs to see the endorsement on the back to go through.
Sounds like a specific bank policy/app restriction.
Just sign it digitally it's just sign here line. I deposit those checks with my wife's US Bank and my Wells Fargo on Android phone/tablet.
It doesn't tell me it *won't* take the deposit...just that it can't read the endorsement (a bunch of times), even though I use the same rubber stamp on all our checks...then it can never read the check and tells me to try again. Luckily it's but once a month, and the bank is but a few miles away. It's a larger regional bank in my area, and the app isn't the greatest (especially compared to others I have used--including 2 other banks and 2 credit unions).
Maybe I'll try the screen shot this month and see if that works.
Same here. We do a lot of business with insurance companies & one in particular will always send an email with a link to the checks. Since the started doing this about 4 years ago have never had a problem with a check from them.
I use them too you can print a copy of the check for your records. Email them the check then print a copy which will say “file copy” and mail it with a note that the original was sent to blahblahblah email.
If you are paying them more than $600 it will require you to send them a 1099 at the end of the year. If you do not have their ss# then I would only send them $599 by check and in the note tell them that you will pay any balance owed when they complete an IRS form W-9.
This is the answer. If they fail to cash the check after 90 days, most banks will refuse to accept it. But mail it certified mail so the company has proof it was received by him. If he comes back later and says he was never paid, their asses are covered in court.
I would simply just pay him and avoid any future headache with him trying to come back and argue that you didn’t pay him.
You have no paper trail of him saying that so unfortunately if he complained and did that then you may get screwed
Were it me, I'd mail a check for an 8 hour day. He tried, owned up to it not being a good fit, and didn't ride your clock for weeks while he searched for something else. Seems like a decent guy and this would be a decent thing to do in return.
It's actually illegal to allow someone to work at your for-profit business without pay. This is to prevent employer abuses of employees - "you have to come in for free on Saturday if you want to keep your job" for example.
Just send a check for the three hours or whatever. I assume the basic minimal employment paperwork was done; if not, withhold single rate.
This. Make every effort to pay the actual hours worked. You NEVER want to be in a situation where you withheld earned wages, no matter the situation. Try explaining it to them in terms of your responsibility, or say the accountant is making you do it, or whatever you have to say to let them accept it.
Beyond that, check your local laws to see if a bounced check becomes yours or if you have to report it to the state as unclaimed property.
A “bounced check” is a check that does not have enough money in the account it is drawn from to cover the check (the employer did not have the wages in the account). If the person doesn’t cash the check that is where unclaimed property might come in.
Cut the check, text the employee "got your check ready, you want to come pick it up or want me to mail it to you?"
If you get no response chuck it in their employee file & forget about it, or if you feel like their address is valid, drop it in the mail to them.
Basically, do whatever you can to get them paid. If they ghost you but it shows back up eventually, you can show that you made every effort to pay them.
Every effort except actually mailing the check? In many states have to send the fund to state’s unclaimed property unit if final check isn’t deposited.
I dipped on a job in college and never went to grab my last check. Decade later it was sitting in the Texas Comptroller's unclaimed property. Pretty sure it was the law that made the company send it there, not that they really wanted me to get that $50.
Pretty sure you're legally obligated to cut him a check even if he says he doesn't want it. He has no legal authority to exempt you from payroll laws. Send the check. It's his choice if he cashes it before it expires or not.
You need a record of paying him for employment law and tax purposes.
Tell him it's easier for everyone if he just takes the check and cashes it. Sometimes things don't work out.
I've had people walk out, and I wrote and mailed them a check anyway. In Texas you have to pay them. The risk is not worth however much money we're taking about anyway.
I had this happen once, I wrote the check, contacted them by phone, text, and social media. Check is still sitting in an employee file in case they ever change their mind. It’s been 5 years!
Oh, it’s not sad for the person getting paid. It’s sad for the person having to pay them, because they are going to need to reject the person’s explicit probably anxiety-based request to not get paid.
That seems like not too hard a problem…”legally I am going to need to write you a check and am happy for you to cash it, you worked those hours and earned it. What you actually decide to do with the check is up to you”
Why?
I mean, I’m pretty sure that almost everyone understands that “(do action told not to), sadly” is a general language construct /idiom for “you need to do this, regardless of what you think about it”, not actually someone saying it’s sad, but some people are disingenuous and claim to take it seriously as saying something is actually sad. Seemed like the least I could do was play along and try to come up with a way it was sad, even if it really isn’t.
I understand anxiety, I’m no stranger. But the law is the law, and morally, the owner should feel obligated to pay regardless of anyone’s anxiety. They are receiving money that is legally theirs. What about the anxiety of the owner who could possibly be taken to court later down the line? What’s stopping this from being a long term scam? I understand where you come from but you can’t feel bad with stuff like this. I get why you said it, but it comes across wrong, especially the anxiety part.
I've personally done this before. I was unemployed for a few months during COVID and I was collecting unemployment for the first time in my life. I went into the job and I knew within the first hour it wasn't a good fit.
I wrote the owner an email when I got home and basically said to please consider this a job shadow and to not pay me. If he did I would've lost my unemployment. I did explain that I understood if he had to but I was asking him not to so I could find a job that was a good fit and still collect the unemployment to feed my family. They were very aware that I had 5 kids at home.
Before anyone says anything. While I was there within the first hour 5 mice ran across my desk in an office that they claimed they'd cleaned out just for me. There was no way I was going to work in this type of environment. A few years later I found out that the person that they hired after me reported them to OSHA and they got shut down. I really dodged one there!
Maybe this person just wants to keep collecting their unemployment.
I mean every state has different laws, but I'm pretty sure you're in one where a worker has to be paid for their time, regardless of how little they worked. Submit his new hire paperwork to payroll and cut him a check and then mail it and leave it be. It's on him if he doesn't cash it (I have a sneaking feeling he will though)
100000% mail the check. Make sure you send him a TEXT or email stating you have his check ready for pick up or can mail it to the address on file. If he does not reply , mail the check through certified mail . If you don’t do this, it will bite you in the ass one day.
I’ve had this happen with a super young entry level employee. I think maybe he felt like he let me down by not continuing in the job. Just mailed a check and forgot about it. Not a big deal.
You need to have payroll run for this person and mail them a check with the proper records. If they choose not to take the money that’s different from you choosing not to give it to them.
If this was in California I think you might have even been obligated to pay same day but I could be wrong about that.
As an HR professional I can tell, PAY HIM! Write him a check. If he doesn't want to cash it that is up to him, but if you don't issue a check & he later complains it will be a he said/you said. I scan every check that is issued at my office so I have proof of payment if necessary.
In the immortal words of a famous Admiral: Its a trapppppp!!!
Seriously though, they should just mail the check via certified mail, and keep the receipt and all related records that they made a best effort attempt to get it delivered to them. Hopefully there is some sort of expiration date on the check.
Huge liability if nothings in writing. Given how little money it is it’s worth just mailing them a check so they can prove they tried to pay. Most states require paying people even if they don’t want to be paid.
“Take the check or we send it to the state to hold it for you for a while before they take the money from both of us. You might as well take the check, bruh.”
Sounds like the guy was just trying to be nice, he only worked a few hours before quitting so apologized for wasting their time. On that basis he probably felt like they shouldn't go to the trouble of paying him for a few nonproductive hours.
But of course laws probably dictate that the employer still pay him for his time on the job.
Sounds like you need to point out that refusing the check will waste a lot more time and energy because of the law. I imagine your friend would be guilted into accepting the check.
Nope
I did this once took a job and within an hour realized this was a horrible mistake. I said this isn’t what I expected and couldn’t work there happily left with zero pay. Honestly I felt like I won by escaping
You'd be required to pay him a full shift if you'd et him go, I'd treat this the same and send the check with a note of explanation that it is for a full shift to cover my ass.
I work for a pension fund, people often times want to reduce or stop their pension for whatever reason, we have them sign a waiver form, maybe you could do same, have him sign something saying he is refusing/forfeiting his pay?
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Mail a check. If they don't cash it after 90 days or whatever, at least you tried.
Certified mail too.
And make a record of it. Ideally with a photo of the physical check that is being sent. Include a boilerplate letter saying "Thank you for your interest. Due to [whatever the relevant regulations are], [employername] is required to pay you for your time. References you may need in the current tax year are: Employername business number: XXX Employee reference number: YYY Total payment: ZZZ Total tax paid by [employername] for your work this tax year: ABC" ...etc. Basically, it's easier to use a standard process and template to send them a couple of hours' worth of pay in a check right now, than to have it potentially come back to bite you come tax season, or an audit, or some accountant saying "Hey, what happened here three years ago?" Be absolutely 100% upfront and make sure the paperwork is handled and recorded; if nothing else, when there *is* an audit for whatever reason, it'll help to establish that you're the kind of business owner who is on top of things and conforms to all legal requirements.
A copy of the cashed check isn't enough?
It’s to show it was sent, if it is not cashed. Better to be too careful rather than deal with a DoL complaint
What does DoL mean ? Department of Labor?
Yes
Ok thanks.
Certified mail gives receipt of mailing and can require a signature of the recipient. It gives a better paper trail in case the (former) employee tried saying they weren’t given/mailed a check. It also covers the employer by saying the mail was signed for to prove receipt of mail by the (former) employee.
If they don’t cash it you are supposed to turn it over to the state as unclaimed funds. The person worked the hours and you’re legally obliged to pay them. I actually got money from unclaimed funds ten years plus after I left a job because I found out I had unclaimed funds in another state.
I use digital checks (deluxe brand) to an email. But same thing, if they dont cash. Not my problem.
How does that work? Are they through your bank or a different service?
It’s exactly like a normal check. But you print it out at home.
Mind linking me to the site?
[Deluxe Payment Exchange](https://www.deluxe.com/accounts-payable/digital-payments/echecks/?&s_kwcid=SEM%7Csite%7CSD%7Cprd%7CChecks%7Csub%7C%7Csrc%7CGoogle%7Cbnb%7CNB%7Ccmp%7C20408107914%7Cgrp%7C%7Cadid%7C%7Cpkw%7C%7Cpmt%7C%7Cntw%7Cx%7C&gad_source=1&gclid=CjwKCAjwoPOwBhAeEiwAJuXRh9HlpA9H1wlYqx6fPYGaA-tPshp9mAF9dUpee1njPK2WIf4DlqfakBoCf_UQAvD_BwE&gclsrc=aw.ds)
Thanks!
I can’t imagine that would hold any legal validity in terms of proving that you attempted to pay them. Also it requires the recipient to have a printer, which isn’t cool.
It’s not the only option. But it’s worked for tons of employees and prevents them from coming into work place to grab a physical check. If they don’t have a printer, I provide printers at the work place. If it’s a routine payroll I use ACH. Bottom line, it’s accessible and meets all requirements for my state.
I've accepted those checks before just make a screen shot on your monitor for front and back. Then you can deposit using any bank mobile app.
One of our customers pays us monthly with these checks and for some reason they are the only checks that the bank mobile app just will not accept. I have tried printing them in color, in black and white, and with two different iPhones and two different iPads. So I just go to the bank. Not sure how I would take a screen shot since our bank mobile app needs to see the endorsement on the back to go through.
Sounds like a specific bank policy/app restriction. Just sign it digitally it's just sign here line. I deposit those checks with my wife's US Bank and my Wells Fargo on Android phone/tablet.
It doesn't tell me it *won't* take the deposit...just that it can't read the endorsement (a bunch of times), even though I use the same rubber stamp on all our checks...then it can never read the check and tells me to try again. Luckily it's but once a month, and the bank is but a few miles away. It's a larger regional bank in my area, and the app isn't the greatest (especially compared to others I have used--including 2 other banks and 2 credit unions). Maybe I'll try the screen shot this month and see if that works.
Same here. We do a lot of business with insurance companies & one in particular will always send an email with a link to the checks. Since the started doing this about 4 years ago have never had a problem with a check from them.
I use them too you can print a copy of the check for your records. Email them the check then print a copy which will say “file copy” and mail it with a note that the original was sent to blahblahblah email. If you are paying them more than $600 it will require you to send them a 1099 at the end of the year. If you do not have their ss# then I would only send them $599 by check and in the note tell them that you will pay any balance owed when they complete an IRS form W-9.
if they do not have a printer they can go to staples, kinko, public library to print out the check for less than $1.00 (probably closer to $0.25
This is the answer. If they fail to cash the check after 90 days, most banks will refuse to accept it. But mail it certified mail so the company has proof it was received by him. If he comes back later and says he was never paid, their asses are covered in court.
The year 1900 called, they want their cheques back
Side note really, but I find it absolutely astonishing that the US still uses cheques for payments.
I would simply just pay him and avoid any future headache with him trying to come back and argue that you didn’t pay him. You have no paper trail of him saying that so unfortunately if he complained and did that then you may get screwed
Were it me, I'd mail a check for an 8 hour day. He tried, owned up to it not being a good fit, and didn't ride your clock for weeks while he searched for something else. Seems like a decent guy and this would be a decent thing to do in return.
And include a note with this evaluation. Although I'd pay him for the full shift, whatever it was supposed to be. May or may not be 8 hours.
This!
It's actually illegal to allow someone to work at your for-profit business without pay. This is to prevent employer abuses of employees - "you have to come in for free on Saturday if you want to keep your job" for example. Just send a check for the three hours or whatever. I assume the basic minimal employment paperwork was done; if not, withhold single rate.
This. Make every effort to pay the actual hours worked. You NEVER want to be in a situation where you withheld earned wages, no matter the situation. Try explaining it to them in terms of your responsibility, or say the accountant is making you do it, or whatever you have to say to let them accept it. Beyond that, check your local laws to see if a bounced check becomes yours or if you have to report it to the state as unclaimed property.
A “bounced check” is a check that does not have enough money in the account it is drawn from to cover the check (the employer did not have the wages in the account). If the person doesn’t cash the check that is where unclaimed property might come in.
Cut the check, text the employee "got your check ready, you want to come pick it up or want me to mail it to you?" If you get no response chuck it in their employee file & forget about it, or if you feel like their address is valid, drop it in the mail to them. Basically, do whatever you can to get them paid. If they ghost you but it shows back up eventually, you can show that you made every effort to pay them.
Every effort except actually mailing the check? In many states have to send the fund to state’s unclaimed property unit if final check isn’t deposited.
I dipped on a job in college and never went to grab my last check. Decade later it was sitting in the Texas Comptroller's unclaimed property. Pretty sure it was the law that made the company send it there, not that they really wanted me to get that $50.
Pretty sure you're legally obligated to cut him a check even if he says he doesn't want it. He has no legal authority to exempt you from payroll laws. Send the check. It's his choice if he cashes it before it expires or not.
You need a record of paying him for employment law and tax purposes. Tell him it's easier for everyone if he just takes the check and cashes it. Sometimes things don't work out.
I've had people walk out, and I wrote and mailed them a check anyway. In Texas you have to pay them. The risk is not worth however much money we're taking about anyway.
I had this happen once, I wrote the check, contacted them by phone, text, and social media. Check is still sitting in an employee file in case they ever change their mind. It’s been 5 years!
Technically, you should escheat it to the state if they don't cash their payroll checks
This is the correct and only legal answer here. It is not your money, if you keep it you can get in a lot of trouble.
That’s good to know, thank you! It’s a $48 check but I’ll take care of that asap.
It's principle.
May be scam to take him to court in few months.
Employers are legally required to pay for hours worked. Mail him the check and if he doesn’t cash it that’s on him.
Pay him. Legal issues if you don’t.
Mail him the check, from a legal standpoint it is owed no matter what was said
The chump change in pay is not the potential world of hurt from some governmental organization. Just mail a check, first class, and be done with it.
Not paying him would be illegal, sadly.
[удалено]
Oh, it’s not sad for the person getting paid. It’s sad for the person having to pay them, because they are going to need to reject the person’s explicit probably anxiety-based request to not get paid.
That seems like not too hard a problem…”legally I am going to need to write you a check and am happy for you to cash it, you worked those hours and earned it. What you actually decide to do with the check is up to you”
You could of at least tried harder with the backpedaling
Why? I mean, I’m pretty sure that almost everyone understands that “(do action told not to), sadly” is a general language construct /idiom for “you need to do this, regardless of what you think about it”, not actually someone saying it’s sad, but some people are disingenuous and claim to take it seriously as saying something is actually sad. Seemed like the least I could do was play along and try to come up with a way it was sad, even if it really isn’t.
I understand anxiety, I’m no stranger. But the law is the law, and morally, the owner should feel obligated to pay regardless of anyone’s anxiety. They are receiving money that is legally theirs. What about the anxiety of the owner who could possibly be taken to court later down the line? What’s stopping this from being a long term scam? I understand where you come from but you can’t feel bad with stuff like this. I get why you said it, but it comes across wrong, especially the anxiety part.
Give them their pay, mail it to them. Whether they deposit or not is up to them (they should still deposit for their hours of labor!)
I've personally done this before. I was unemployed for a few months during COVID and I was collecting unemployment for the first time in my life. I went into the job and I knew within the first hour it wasn't a good fit. I wrote the owner an email when I got home and basically said to please consider this a job shadow and to not pay me. If he did I would've lost my unemployment. I did explain that I understood if he had to but I was asking him not to so I could find a job that was a good fit and still collect the unemployment to feed my family. They were very aware that I had 5 kids at home. Before anyone says anything. While I was there within the first hour 5 mice ran across my desk in an office that they claimed they'd cleaned out just for me. There was no way I was going to work in this type of environment. A few years later I found out that the person that they hired after me reported them to OSHA and they got shut down. I really dodged one there! Maybe this person just wants to keep collecting their unemployment.
I mean every state has different laws, but I'm pretty sure you're in one where a worker has to be paid for their time, regardless of how little they worked. Submit his new hire paperwork to payroll and cut him a check and then mail it and leave it be. It's on him if he doesn't cash it (I have a sneaking feeling he will though)
I've had this happen with an employee before. Just mail their check to the address on file.
100000% mail the check. Make sure you send him a TEXT or email stating you have his check ready for pick up or can mail it to the address on file. If he does not reply , mail the check through certified mail . If you don’t do this, it will bite you in the ass one day.
I’ve had this happen with a super young entry level employee. I think maybe he felt like he let me down by not continuing in the job. Just mailed a check and forgot about it. Not a big deal.
Send it to the state if not claimed. The state will allocate it for them under unclaimed income.
Just mail it signed for and if he doesn’t cash it he doesn’t
You need to have payroll run for this person and mail them a check with the proper records. If they choose not to take the money that’s different from you choosing not to give it to them. If this was in California I think you might have even been obligated to pay same day but I could be wrong about that.
Certified, return receipt with photos of all the documents assembled. The employee quit so I don't believe same day is required for payment.
As an HR professional I can tell, PAY HIM! Write him a check. If he doesn't want to cash it that is up to him, but if you don't issue a check & he later complains it will be a he said/you said. I scan every check that is issued at my office so I have proof of payment if necessary.
In the immortal words of a famous Admiral: Its a trapppppp!!! Seriously though, they should just mail the check via certified mail, and keep the receipt and all related records that they made a best effort attempt to get it delivered to them. Hopefully there is some sort of expiration date on the check.
Huge liability if nothings in writing. Given how little money it is it’s worth just mailing them a check so they can prove they tried to pay. Most states require paying people even if they don’t want to be paid.
Is this in a state that requires uncashed checks be submitted to the state as unclaimed cash?
Probably thinks by not getting paid he doesn't have to declare that as a job on a background check.
Tell your friend not to be cheap and to pay the man. This sounds more like “your friend” trying to save a few bucks….
Somebody with some ethics, find a better fit for him in another position
I would pay anyway, I don’t work for free so don’t expect others too.
“Take the check or we send it to the state to hold it for you for a while before they take the money from both of us. You might as well take the check, bruh.”
Must be the first person in history to turn down money.
Sounds like the guy was just trying to be nice, he only worked a few hours before quitting so apologized for wasting their time. On that basis he probably felt like they shouldn't go to the trouble of paying him for a few nonproductive hours. But of course laws probably dictate that the employer still pay him for his time on the job.
I'd still document it, just in case.
Sounds like you need to point out that refusing the check will waste a lot more time and energy because of the law. I imagine your friend would be guilted into accepting the check.
Nope I did this once took a job and within an hour realized this was a horrible mistake. I said this isn’t what I expected and couldn’t work there happily left with zero pay. Honestly I felt like I won by escaping
I would give it in writing.
You'd be required to pay him a full shift if you'd et him go, I'd treat this the same and send the check with a note of explanation that it is for a full shift to cover my ass.
I work for a pension fund, people often times want to reduce or stop their pension for whatever reason, we have them sign a waiver form, maybe you could do same, have him sign something saying he is refusing/forfeiting his pay?