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Handling Aged Payroll Tax and Garnishment Checks: Reissuance, Escheatment, and Compliance Best Practices
June 8, 2026
Q. Many of our stale-dated checks are payroll-related payments for state or local taxes or court-ordered garnishments. Our payroll department is very hesitant to reissue or escheat these payments when they become aged, as we have encountered situations where the agencies later assess penalties for non-payment or late payment. What is the best practice for these items, and does it differ from general invoice payments, which we tend to have fewer issues with?
A.
(Answered by IOFM's Advisory…
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