Employer is cashing checks (checks are drawn on employer's business) for multiple employees and aggregated exceeds $10,000.01 so CTR should be filed. My question is who should be listed as the benefactor? We do batch filing so our system ask for a Benefactor and Transactor. I called FinCEN's CTR Helpline, a year ago and then last week, and received difference guidance. First call told me the employer would be the benefactor and second call stated there would be no benefactor only the transactor/conductor listed with "person conducting transaction for another" would be marked. Thanks for your help!

Is the employer cashing the checks for them at the bank?

If they are, you would have mulitple Part I's - the individual conducting the transaction would be listed with box 2b checked and then Part I's for all of the individuals benefitting from the transaction with box 2c checked.

You can have multiple scenarios in what you have described. If the employer brings the checks in and you cash them separately so he can give the money to the individual employees, you should list each employee as conducted on behalf of. If he gives you fifteen checks totaling $13,265.20 and you just give him $13,265.20, you may have a case for conducting on own behalf (or a transactor conducting on behalf of the business).

Our scenario is the employer is giving us 15 checks totaling $13,265.20 and we are giving him $13,265.20 - the checks are not being cashed separately.

That being the case you have a Part I for the individual who received the cash (2b) and a Part I for every one of the employees (2c).

Related thread

I did call FinCEN again and if the checks are double endorsed (the payee signs and then the representative of the employer) and no check exceeds $10,000, the Shrimp Boat Ruling applies and completion of Section A of CTR would be the employer. If for some reason the employee/payee did not endorse the check and only the person cashing the checks; then Section A would include information on each payee.

Thanks for your help!

As suggested in the thread Brian linked, concern over what this practice facilitates carries a lot more weight than how to fill out the form. Suggest you put a stop to it.

I feel like the answer FinCEN gave in this case is very nuanced and more akin to that individuals personal opinion on the matter (i.e. are you comfortable explaining this as your reason during an exam/audit?).

Personally, I go back to who benefits from the transaction(s). As these are clearly payroll check items and the employer is doing this service as a courtesy for them, then IMO you need a 2(b) for the employer and a 2(c) for each employee. I have had several commercial customers attempt this type of transaction but once I start requesting D/L + TIN info for each employee it quickly stops.

Thank you. That should be a clear message for everyone who allows this. First, it's a lousy banking practice. Second, don't tell yourself that there is no chance you are facilitating illegal activity. Just be honest and tell yourself you don't care.