State Unclaimed Property Laws
Every company in the United States is required to be in compliance with State unclaimed property laws. Unclaimed property is described as dormant assets, either tangible or intangible, that have not been cashed or claimed.
Common types of unclaimed property assets are:
- Outstanding Accounts Payable Checks
- Credit Balances or Credit Memos
- Outstanding Payroll Checks and Employee Benefits
- Accounts Receivable – Unknown Credits
- Outstanding Disbursements to Customers or Members
Penalties for failing to meet State escheatment laws vary by State and range from penalty and interest charges for each outstanding item to criminal charges of the company’s executives.
Hudson Escheatment Services
Hudson is a leader in Escheatment Services. We can provide assistance in:
- Reconciling your unclaimed property records,
- Reclaiming assets in the dormancy period that do not need to be escheated,
- Performing due diligence,
- Resolving out of compliance issues by creating Voluntary Disclosure Agreements for first time filers,
- Submitting unclaimed property and related documentation to each State, and,
- Policy and procedures development.
Outsourcing the Process
Outsourcing your escheatment process is an opportunity not only to save direct expenses but it also ensures compliance. Hudson can provide these services at a fraction of what it would cost to hire dedicated individuals. Hudson is able to perform the following services:
- Scrubbing outstanding data to determine items that need to be escheated,
- Preparing due diligence letters and tracking undeliverable items,
- Filing required electronic input and formats for each State, and,
- Preparing a summary database for all States by asset type and amounts due.
Hudson has over 35 years’ experience in unclaimed property compliance and has developed relationships with all States. Hudson’s expert staff has successfully worked with Fortune 1000 and mid-size companies in ensuring that their unclaimed property escheatment process meets each State’s specific laws. Hudson is independent from your audit process and therefore all compliance issues are confidential. It is Hudson’s goal to ensure your escheatment process meets all required audit tasks and to mitigate any issues prior to an internal or external audit.