Gain a clear understanding of what is encompassed under unclaimed property as it relates to payroll and how to avoid legal pitfalls of unclaimed checks.
When checks, payroll cards and other types of instruments provided to employees for the payment of wages, bonus-es, or reimbursements, or to other vendors as compensation for personal services, are not cashed, utilized or lost; the businesses responsible for the payments are required by the laws of all States to file reports and transfer the payments to the state unclaimed property administrators of the State of the last known address of the payees, or to the State of incorporation of the business if the addresses of payees are unknown. Depending on the applicable State laws, reports and payments to States are due within six months to two years after the date of payments may be claimed by employees or vendors. The failure to report and remit unclaimed employee and vendor compensation when due may result in the imposition of penalties and interest. The failure to report and remit unclaimed wages and vendor payments, may also expense business to audits of their compliance with state unclaimed property laws for all other types of unclaimed property, including audits be private contingent-fee auditors. This program will help manag-ers of payroll and human relations departments, and other company personnel and consultants understand the pur-pose of unclaimed property and escheat laws; what their obligations are under these laws; how to determine to which states reports must be filed and unclaimed property remitted; when reports must be filed, and payments made; and how to reduce exposure for liabilities under these laws.
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