Note: Some states have requirements for processing unclaimed property. Check with your state and local government to verify how to process unclaimed funds.

Because you will need to provide W-2 information for an employee that is terminated, no longer with your company, or otherwise never cashed their Payroll check, you cannot void the check in Payroll.

Instead, do a reversing Cash Management Adjustment (Tasks, Edit Register) as an Addition for the amount of the check. Then on your next bank reconciliation, you can clear and reconcile both the old uncashed Payroll check and the new offsetting adjustment.

For detailed steps and considerations on how to do a Cash Management adjustment, refer to the article below.

Note: Some states have requirements regarding the handling of unclaimed funds. Contact your state revenue office to see if our state has any requirements.