It bothers me that the employee did not bring it to your attention. This shows dishonesty and lack of character to say the least. You didn't state if it was done on one check or two. If it was two contact the bank and see if both checks have been cashed. You do not have to give notice, or work out a payment plan of any sort if the employee cashed the check. I would call the employee into the office and tell them they will not be getting a check during this pay cycle, unless time worked exceeds what they were paid. However, if the employee decides to quit and they have not worked enough to cover said amount, then it is your loss. Someone had to sign and authorize both checks, so the oversite is on the actual company, not the payroll company. This may be the determining factor in when you want to tell the employee that you realized what happened.
Hope this helps, Susu
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