Requirements For Unclaimed Paychecks
Amazingly, departing employees don't always collect all wages owed to them. Unfortunately, as a payroll professional, that becomes your problem!
Each state has specific laws and requirements on how employers must report, remit, and document amounts for checks that are uncashed by employees. As you can imagine, escheat or unclaimed wages can become a large compliance issues for employers.
And now, many states are turning an ever vigilant eye towards unclaimed wages as a source of revenue that can be easily tapped with existing laws. All they have to do is to crackdown on enforcement - and they are doing just that!
Though non-compliance may be simply a matter of the company not being aware of their reporting responsibilities, it won't stop the huge fines and penalties for failing to report unclaimed wages.
Failure to comply with state regulations could now result in audit assessments, significant interest accumulations, and criminal penalties. And organizations with corporate headquarters in one state and employees in other states could be liable for penalties in all states that they have employees. Do you know your obligations?What You'll Learn:
This training session will review the laws of all 50 states with regards to unclaimed wages. By attending this audio conference you will learn:
- The definitions of unclaimed properties and escheat law
- The difference between tangible and intangible property that can go unclaimed
- State-by-state reporting and remitting requirements
- State-by-state review of dormancy period laws and due diligence requirements
- The difference between reporting and remitting
- Payroll Department’s role and responsibilities for unclaimed property
- What types companies are at higher risk of an audit
- Record retention requirements by state
- Best practices for unclaimed paychecks