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Pay Checks mailed?

jenmjenm ✭✭
edited September 2010 in General Payroll Topics
My company would like to start mailing through the US post office the paychecks for employees that receive a physical check.

Are there laws that require the employee to have the paycheck in their hand on pay day? Or can the envelope be postage stamped on pay day?

Any information would be greatly appreciated.

Comments

  • The state I've run across with the most stringent labor laws concerning delivery of payment is Texas. Employees there?
  • Another thing to keep in mind with using mail as your delivery method is the IRS views the constructive receipt as the day the mail delivers the check, not necessarily the actual date. This could be an issue with a check dated at the end of a quarter or year end.
  • We mail our checks 4 days prior to the check date and have not had any issues. This will definately increase your direct deposit participation :-)
  • This Wikipedia has a good discussion -
    http://en.wikipedia.org/wiki/Constructive_receipt
    Another thing to keep in mind with using mail as your delivery method is the IRS views the constructive receipt as the day the mail delivers the check, not necessarily the actual date.

    I take it you mean the date mailed. The problem with a paycheck being mailed is whether the employee had unfettered access at the time it was mailed - with paychecks, my impression is that the employee has unfettered access despite the mailing because the employee knows the check is available on that date and can make other arrangements to obtain the funds. This is distinguished from a contractor (Accounts Payable check) where the payment date is not a certainty and the contractor does not know to or have the opportunity to make other arrangements to obtain the funds. In that case, constructive receipt does not occur until the contractor actually receives the check or knows that it is available.

    For the employees in this case, the "employees who receive physical checks" suggests to me that these are employees who have declined direct deposit rather than the mailing (and delay) being for the employer's convenience.

    Anyway, my view is that if the mailing is based on an employee choice (to not sign up for direct deposit, for example) then constructive receipt occurs on payday - not when delivered.
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