Believe it or not, you just canít keep a paycheck that an ex-employee fails to claim.
In fact, there are legal requirements that employers must follow for surrendering these unclaimed paychecks to legal authorities.
Donít get caught Ė and penalized Ė for not following unclaimed paycheck laws for the state(s) in which you do business. Click the applicable links below for more information or to take a training course on Unclaimed Paychecks.
Amazingly, departing employees don't always collect all wages owed to them. Unfortunately, as a payroll professional, that becomes your problem.
And now, many states - given the current economic environment - 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.
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?
This training session covers:
When are wages considered abandoned
What is payroll's responsibility relating to abandoned wages
The Escheatment rules in general and then as they pertain to the payroll department
What are your requirements in notifying the employee that they have an un-cashed check?
How long do you hold the check before it is escheated to the state?
Which state are you required to escheat to?
How to set up a system to handle unclaimed payroll checks routinely to avoid a costly audit
How to establish proper procedures for tracking unclaimed wages correspondence