I am wondering what other banks are doing since the accounts on the bank's overdraft report cannot be on the more than 60 days.... we run our medical flex plan through an account and it is always overdrawn at the beginning of the year. The employees are debited through their paycheck so much per month for the year, and employee turns in what the insurance does not pay, so this account is usually in the negative. What else could we do?

we typically use a GL for things like this. the GL is settled each month with a report going to management of the open issues/items.

Not an expert on this, but I agree, as the negative balance would need to be carried as a liability of the bank.