Rule on Business Owner Cashing Payroll Checks

Answered by:

Question:

Can a business owner cash payroll checks against his business account that are made out to his employees? The checks that are being cashed are from the same business account name but drawn on another bank.

Answer:

There's nothing to prevent the business's management from providing that service to its employees. Such transactions would not constitute MSB activity. As you have described the activity, I don't see anything suspicious about it, either. Other facts might alter that opinion.

First published on BankersOnline.com 11/28/11