Employers holding uncashed payroll, commission, or bonus checks in 2026 are holders who must turn over funds as unclaimed property after the dormancy period. Eligibility depends on the owner's last known address and check age, documents center on payroll identity records, and deadlines vary by state.
A holder means an employer that owes wages or other funds to a worker or vendor. Escheatment means transfer of those funds to the state, which holds them until the owner claims them. Employers may not void aged paychecks or keep the money, according to the California State Controller in the California reporting FAQ.
Table of Contents
- Which employer payments count?
- How long until wages are reportable?
- What notice and records do you need?
- What are the 2026 holder deadlines?
- What should you ask before you escheat?
Which employer payments count?
Uncashed payroll, wage, commission, and bonus checks are unclaimed property when the owner does not cash them. The employer remains the holder and must report and remit the amount to the state. Voiding the check or moving the amount back to general funds does not end the duty.
Vendor checks, deposits, and most other business property can also become unclaimed. Payroll often has a shorter dormancy period than general business items. Review payroll, bonus, commission, and accounts-payable aging together so no category is missed.
How long until wages are reportable?
In California, New Jersey, and Texas, unpaid wages and payroll carry a 1-year dormancy period, while most other property carries a 3-year period, according to the New Jersey Treasury in the abandonment table. The clock generally runs from the last transaction date, such as check issue or last employee contact. A 2025 paycheck that remains uncashed through its dormancy period can therefore be reportable in 2026.
The report goes to the state shown by the owner's last known address in payroll records. That address choice decides which state law, form, and deadline apply. Employers with workers in several states often file in more than one state.
What notice and records do you need?
Before reporting, holders must send due-diligence notice to the owner's last address, typically 60 to 120 days before filing. New York practice calls for first-class mail 90 days before and certified mail 60 days before for property over $1,000, as summarized from New York Abandoned Property Law. Keep mail copies, address records, and any response. Holder reports must include owner and property details specified by the New Jersey Treasury Holder Guidelines in the holder guidelines.
States generally require the NAUPA II Standard Electronic File Format described in U.S. Department of Labor testimony on holder practice. Confirm FEIN, codes, and dates before filing. Missing identifiers cause rejections and delay matching to the owner.
- owner name and last known address
- SSN or TIN where available from payroll records
- property description, NAUPA type code, and amount
- last-transaction date and holder name, address, and FEIN
- statement confirming due diligence was performed
What are the 2026 holder deadlines?
Key holder dates vary by state, as compiled from state reporting instructions in the California reporting FAQ. California calls for a Notice Report by Nov. 1 with a Remit Report June 1-15. Texas calls for reports and payment by July 1.
New York uses a March 10 and June 10 final-report cycle. New Jersey calls for personal property by Oct. 31. Check the current state portal for the exact weekday, file format, and payment method. Late filing can trigger interest and penalties.
What should you ask before you escheat?
Ask payroll whether reissue, address correction, or direct contact can still resolve each check. Confirm whether the worker moved, changed names, or never received the mailing. Document each attempt and keep updated addresses with the payment record. Failure to report or remit on time can trigger interest at 12%
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