Page 266 - Essentials of Payroll: Management and Accounting

EXHIBIT 9.7 Payments to Employees
Years Required to

Hold Unclaimed Pay, by State

Number of Years
to Hold Applicable States
1 Alabama, Alaska, Arizona, Arkansas, Colorado,
District of Columbia, Florida, Georgia, Montana,
Nebraska, Nevada, New Hampshire, New Jersey,
New Mexico, Ohio, Oklahoma, Hawaii, Idaho,
Indiana, Kansas, Louisiana, Maine, Michigan,
Minnesota, Rhode Island, South Carolina,
South Dakota, Tennessee, Utah, Virginia,
Washington, West Virginia, Wisconsin, Wyoming
2 North Carolina, North Dakota, Vermont
3 California, Connecticut, New York, Iowa,
Massachusetts, Texas
5 Delaware, Illinois, Maryland, Mississippi, Missouri,
Oregon
7 Kentucky, Pennsylvania

Summary

The state-imposed limitations noted in the “Frequency of Payment”
section are generally not a problem, since all states allow at least a one-
week delay between the termination of a reporting period and required
payments to employees. It is much more likely to run afoul of state laws
in the area of termination payments, as many states require payments
either immediately or within one day to employees who are involun-

tarily terminated. Making sure that these payments are made in a timely
manner requires tight coordination between the payroll and human
resources departments. State laws regarding the remittance of unclaimed

239