Old Payroll checks

[oceanlovin'ea]

The motel that I do payroll for has a stack of checks that heve never been picked up by the employees. These employees usually quit before payday and never came back to pick up the checks.

I told them that they have to keep the checks for a period of time. But I don't know how long and what the proper procedure is.

Can anyone help me? Or give me a reference to go to?

Thanks Linda F

[JON]

Minnesota

In Minnesota you are supposed to turn all funds like that over to the Sec of State-giving them the information you have-SS#-last know address, etc. They post it on their unclaimed property site and publish in the newpaper. This is true for non payroll checks also. Most states have this.

[oceanlovin'ea]

What time period

Do you know how long you hold them? Do you do it after a year or 6 months?

Linda F

[Jiggers]

How long?

Do you know how long you hold them? Do you do it after a year or 6 months?

Linda F

You need to check with your state. In Texas, our State Comptroller is responsible for unclaimed funds.

Checks that haven't been picked up should have been mailed to the employees. What did the employer do with their W-2's. Those also should have been mailed.

[oceanlovin'ea]

Usually no address

This is that crazy motel that I written about before. The employees are staying at the motel. When they leave, usually they haven't left an address.

But the manager has an assistant that actually seems competent. I have told her to get some kind of an address for these people so we can mail w-2's to them. When they say they don't have another address, she is supposed to ask them where they want their W-2 mailed so that they have to give her some kind of address.

I will check with her to see if these people have an address on file.

Good suggestion.

Thanks. Linda F

[Corduroy Frog]

Escheat Laws

Linda, depends on your state. Normally your Banking Commission (or whatever your equivalent in Florida) can give you info. Ask about "escheat laws."

My state has several million dollars in escheat funds which under state law, must be turned over after a certain time limit. They invest these funds in the banking system (also a big winner) and make money on interest. They also have an "Unclaimed property" division, where if anyone can establish ownership or identity, they can reclaim the property. But the interest it has earned remains the property of the state.

Over half of the items in the "unclaimed property" list are monthly life insurance premiums, where a life insurance draft has been taken out of the deceased bank account during the last month of their life, and no one attempted to reclaim the final premium. In most cases this is under $50. But there are tens of thousands of these small amounts in my state, and the life insurance companies have been legislated to turn over these to the state instead of refunding the deceased estates.

The above is very likely the fate of these uncashed checks if the rightful recipients can't be found. The employer probably doesn't lose sleep over this, but it is a classic example of "Robin Hood in reverse."