Have you ever wondered what should be done with payroll checks that are unclaimed or that never cleared your bank? Unsure of what should be done within Datatech Software to handle those checks? Read on to find out.
Did You Know?
In California, unclaimed wages, salaries, commissions, and similar items are governed by the State Controller’s Office. Once such property has remained unclaimed for one year, it must be reported to the state. Additionally, all holders of unclaimed property are required to review their records annually to determine if they are holding any property that has remained unclaimed for one year.
For more information, see the California State Controller’s Report Unclaimed Property page.
Each state has it’s own process for reporting unclaimed property. Please check your state website to determine what that process is.
NOTE: “If you have non-negotiated checks on your books and the checks are made payable to employees who have left your employment and whom you cannot locate, you may send the Labor Commissioner the non-negotiated checks, along with an explanation of your efforts to contact the employee. The Labor Commissioner will try to locate the employee and make payment of the wages. If these attempts are unsuccessful, the checks will be deposited into the State of California Unclaimed Wages Fund.” – State of CA Department of Industrial Relations
How Do I Handle the Checks in Datatech Software?
- Mark the check as “Not Picked Up” in the program.
- Make an adjustment in the Checkbook for the amount of the check.
- Clear the check from the Bank Reconciliation.
- Reissue the check to the state.
Be sure to see Datatech’s Online Tutorial for recording checks as unclaimed in the program.
NOTE: If you have 1 or more unclaimed checks and the total is less than $2000, one check should be issued to the state, made payable to the California State Controller. For unclaimed checks totaling $2000 or more, EFT (Electronic Funds Transfer) should be used to remit payment to the state. Click here for more information about California’s reporting process.