While the employee may be anxious to get his paycheck replaced quickly, the payroll department needs to balance the employee’s anxiety with the company’s need to ensure that the reissuance is handled properly. You need to be empathetic to the employee while also ensuring that the original check has not already been cashed.
Look up the details of the lost check in your payroll system. In addition to the name of the payee, you need to know the date, number and amount of the check.
Contact your bank to verify that the check has not been cashed.
Request that your bank issue a stop payment on the check. Stop-payment requests usually do not become effective until 24 hours after they are placed, but rules may vary by financial institution. Therefore, it is a good policy to wait at least 24 hours before replacing the check to ensure that the stop payment is successful.
Wait 24 hours, and verify that the stop payment was successful. If it was successful, continue to the next step.
Issue a replacement check to the employee. You need to complete this process through your payroll system so that the replacement check is recorded and included on the employee’s Form W-2. The replacement check needs to have the same earnings, taxes, deductions and net pay as the original check. If you cannot create the replacement check directly in your payroll system, be sure to enter the check details into the system.
Obtain the required signatures on the replacement check. Be sure to include supporting documentation for the person signing the check to review.
Void the original check in your payroll system. This step is critical to ensure that the wages and taxes are not double-counted in the employee’s Form W-2, Annual Wage & Tax Statement, and to remove the check from your outstanding checklist.
Deliver the replacement check to the employee.