Question
What are stale-dated checks and what do I do with them?
Answer
Uncashed paper (live) checks that have a check date of more than six months prior are considered stale (from a Toast Payroll banking perspective). Stale checks usually cannot be cashed by employees, although it is up to their bank if they would allow the check to be cashed after six months.
If you write out of your account, checks will need to be monitored on your end as needed.
If you write out of our account, our Banking team returns funds from stale-dated checks to customers twice a year. When this happens, a communication is sent to you letting you know funds are being returned and which checks the funds are related to. It is up to you to work with the employee as needed to get the funds to the employee.
Customers can no longer choose to write out of Toast's account as of Q1 2022.
This content is for informational purposes and is not intended as legal, tax, HR, or any other professional advice. Please contact an attorney or other professional for advice.