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Final And Unclaimed Paychecks Laws In Maryland

>>> About Final Paychecks Laws In Maryland

State and federal law requires that employers give departing employees their final paycheck within a specified time period or - if a paycheck goes unclaimed - to follow state escheatment rules. The rules in Maryland for both are included below.

Maryland's Requirements For When To Send Final Paychecks

Maryland requires that final paychecks be paid on the next scheduled payday, regardless of whether the employee quit or was terminated.

What Should Be Included In A Final Paycheck In Maryland

The final paycheck should contain the employee's regular wages from the most recent pay period, plus other types of compensation such as commissions, bonuses, and accrued sick and vacation pay. Employers can withhold money from the employee's last paycheck if the employee owes your organization.

For More Info On Final Paychecks

For more about Final Paychecks, go to https://www.payrolltrainingcenter.com/payroll-requirements-for-terminated-employees-wt1000388


>>> About Unclaimed Paycheck Laws In Maryland

Amazingly, departing employees don't always collect all wages owed to them. Unfortunately, as a payroll professional, that becomes your problem.

Technically, unclaimed paychecks are subject to 'escheat' laws as unclaimed property under the laws of the state where the employee last worked. This means that employers are required to follow their state's laws for submitting unclaimed paychecks to the state. Not doing so can subject employers to fines and penalties.

Maryland's Requirements For Unclaimed Paychecks

The following are the reporting and recordkeeping requirements for Maryland's unclaimed paycheck laws:

• Recordkeeping Requirements
  Employers must retain a record of the names and last known addresses of payees for ten years after reporting to the state
• Reporting Requirements
  Maryland employers must report and remit unclaimed wages annually. Typically, the report for unclaimed wages must be sent before Nov. 1 of each year for wages unclaimed as of June 30 of that year

With regard to recordkeeping, Maryland employers should speak with their legal counsel to determine processes and procedures re how many attempts the employer should make to contact ex-employees.

For More Info On Unclaimed Paychecks

For more about Unclaimed Paychecks, go to https://www.payrolltrainingcenter.com/rules-for-unclaimed-paychecks-wt1000338

Recommended Training Courses For Final And Unclaimed Paychecks:

• Payroll Requirements For Terminated Employees
• Legal Requirements For Unclaimed Paychecks
• Paycheck Fundamentals Training & Certification Program
• Certificate Program For Payroll Specialists