TJ, a salaried employee, was terminated from the company in June of this year. Business had been slow since the beginning of this year, and each of the operating divisions had laid off employees. TJ's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office. As had been the policy, checks for the workers at remote sites were mailed (or directly deposited) to the employees. The mailing of TJ's checks continued for the next four weekly paydays. It wasn't until the monthly payroll reports were sent to TJ's  supervisor that the error was detected.  TJ refused to return the four extra checks. What action should the company take?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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TJ, a salaried employee, was terminated from the company in June of this year. Business had been slow since the beginning of this year, and each of the operating divisions had laid off employees.

TJ's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office.

As had been the policy, checks for the workers at remote sites were mailed (or directly deposited) to the employees. The mailing of TJ's checks continued for the next four weekly paydays. It wasn't until the monthly payroll reports were sent to TJ's  supervisor that the error was detected. 

TJ refused to return the four extra checks. What action should the company take?

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