Abandoned wages, abandoned property, escheat…the process may have many names but only one real requirement. All “holders” must report all unclaimed property to the proper state, at the proper time, in the proper manner using the proper method. No ifs, ands or buts. The problem is most employers are unaware of this requirement or that “abandoned or unclaimed wages” fall into the category of unclaimed “property”.

Many states have moved towards unclaimed wages as a source of revenue that can be easily tapped with existing laws and a crackdown on enforcement. Failure to comply with state regulations could now result in audit assessments, significant interest accumulations, and criminal penalties. The ramifications may not even be limited to one state. For instance, organizations with the corporate headquarters in one state and employees in other states could be liable for penalties in all states that they have employees. It all depends on which employee did not claim which paycheck in which year. Unfortunately, not being aware of the requirement doesn’t stop the huge fines and penalties that befall the company for failing to report unclaimed wages.

The only way to avoid these huge penalties, fines and interest is for the payroll department to correctly identify all unclaimed wages, and report and remit them each year to the proper authorities. This course explains when wages are considered abandoned, how to track and submit these checks to the appropriate state and how to perform the required due diligence.