One of our employee's checks bounced at a "Check into Cash" check cashing place. Who is reponsible to them?
Untitled
If the check that bounced was a payroll check issued by your company to your employee, the check cashing business can look to either the employee or to you for payment. Each of you is liable to the holder of the check.
If your employee repays the check cashing business, your business will remain obligated to pay your employee, after all, your check bounced! If you pay the check cashing business, your employee will be off the hook, and you won't owe him or her a replacement check.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
If the check that bounced was a payroll check issued by your company to your employee, the check cashing business can look to either the employee or to you for payment. Each of you is liable to the holder of the check.