About This Course:
Don't Let an Uncashed Paycheck Become a Costly Compliance Issue
An employee never cashes their paycheck. Now what?
Many employers are surprised to learn that unclaimed wages are governed by state unclaimed property (escheat) laws - and simply voiding the check or returning the funds to the company isn't the answer.
This practical webinar helps payroll professionals understand their obligations, avoid costly compliance mistakes, and confidently manage unclaimed payroll checks from start to finish.
Learn The Rules 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?
Why This Webinar Matters
Every Uncashed Paycheck Creates Employer Responsibilities
Whether it's a final paycheck, a lost payroll check, or wages owed to a former employee, employers have legal responsibilities that continue long after payday.
Because every state has its own reporting deadlines, due diligence requirements, and remittance rules, even experienced payroll professionals can struggle to stay compliant.
This webinar explains the process in practical terms so you can better understand what actions to take-and when to take them.
Small Payroll Issues Can Lead to Significant Compliance Problems
An uncashed paycheck may seem like a minor administrative issue - but failing to follow state requirements can expose employers to:
- State audits
- Interest and monetary penalties
- Reporting violations
- Time-consuming corrective filings
- Increased compliance risk across multiple states
Understanding your obligations before deadlines arrive can help your organization avoid unnecessary expense and administrative burden
Practical Guidance
Unclaimed wages don't occur every day, but when they do, employers are expected to follow specific legal requirements.
This webinar simplifies a complex, state-driven compliance topic into practical guidance you can use to improve payroll processes and reduce compliance risk.
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
Unclaimed Paycheck Rules By State
View the
state by state rules for unclaimed paychecksRegister Today
Don't wait until an audit - or an overlooked payroll check - reveals gaps in your compliance process. Spend 90 minutes learning how to properly manage unclaimed payroll checks, satisfy state reporting requirements, and help protect your organization from avoidable penalties.
Top FAQs
In business since the mid-1990's, we have over 25 years of experience delivering high-quality training content via seminar, webinar, online, and other formats. Each of our courses are delivered by an industry expert who will share his or her years of experience to help you be in compliance, smarter, and more productive, and almost all offer SHRM and HRCI credits.
While many payroll-related regulations are federally-governed, there also are many state requirements, including those for handling garnishment, final paychecks, and unclaimed paychecks. Each state's requirements differ in the details, so be sure to check your state's requirements by clicking the applicable link(s) at the bottom of this page.
In addition to ensuring that employees are paid correctly and on time, "Payroll" has numerous time and reporting requirements. The primary payroll areas include paychecks, reporting, operations, and management.
Unclaimed paychecks are subject to escheat laws as unclaimed property. As such, the laws of the state where the employee last worked apply. As such, employers should return any uncashed paychecks to the state where the person last worked.
Yes. Employers can be fined or penalized if they don't return the check, even if the person can't be found. In these situations, employers are legally bound by state law to return any uncashed paychecks to the state where the person last worked.
Even if a check is abandoned, the employer has no right to void the check. The funds from an uncashed payroll check should never be returned to the company's payroll checking account. Employers must keep the funds available to pay the employee or to submit to the state.
Payroll is much more than just handing out paychecks, and includes a variety of responsibilities such as handling garnishments, travel pay, multi-state taxation, unclaimed paychecks, and much more in a timely and accurate fashion.
Payroll Administrators must be able to:
- Properly "classify" workers
- Apply the various exemptions
- Calculate gross pay and properly make deductions
- Correctly identify, pay, and withhold taxes for employees
- Administer deferred compensation, cafeteria plan, sick pay, and other compensation
- Handle stock options, expense reimbursements, relocation, and other "expenses"
- Follow the proper policies, procedures, and documentation requirements for garnishments and levies
- Properly complete and file all required reporting requirements
- Correctly complete year-end requirements and establish year-beginning requirements
- Implement and maintain fraud, audit, disaster recovery, and record retention processes and procedures
Yes. Unclaimed paychecks are subject to escheat laws as unclaimed property. The laws of the state where the employee last worked apply. Employers that have a paycheck for a former employee or employee which has not been claimed for a period of time must follow the same state reporting timeline as for other property.
Generally speaking, unclaimed paychecks, employers are required to hand over the amount of the check to their state. This process, called "escheatment", requires abandoned or unclaimed personal property to be submitted to the state after a certain time period (depending upon the state, "unclaimed" means from one to five years).
Continuing Education Credits:
Click the 'Credits' tab above for information on PHR/SPHR, PDCs, and other CE credits offered by taking this course.
