Blog: Final / Unclaimed Paychecks

An uncashed paycheck does not become the employer's money. It becomes unclaimed property, owed to a state under escheatment law, with reporting obligations, due diligence requirements, and an audit regime that reaches back further than any tax statute of limitations.

The two errors are equally common and equally expensive: writing stale checks back to income, and reporting to the wrong state.

Why This Is Not a Payroll Cleanup Task

Unclaimed property