October filing season is upon us. It’s important to get this process right so your report will be considered submitted in a timely manner. Here is some information to help you toward that goal.
For a report submission to be considered complete and filed on time, the state must receive your state report file and your payment on or before the due date. The payment piece does not apply if you are filing a negative (zero) report or if you are filing the California holder notice report.
If you use a system that allows you to submit the report to the state at the same time it is generated, pay attention to the instructions for how to make the payment.
Not every state participates in this type of online submission. California, Connecticut, Hawaii, Puerto Rico, and Virgin Islands still require you to burn the report file to a CD and mail it to the state with your payment. Some will take flash drives or other media. Check the state handbooks for those requirements.
Some states require the report file to be uploaded directly to the state’s website. These include: Delaware, Florida, Maryland, Massachusetts, Nevada, New Jersey, New York, Oklahoma, Tennessee, Texas, and Virginia. When you upload the report file to the state website, pay attention to the payment instructions.
The method of payment is important. Many states are moving away from paper checks and requiring a form of electronic payment. In fact, these states may assess a fine if you try to pay with a paper check.
Alabama, Nevada, Tennessee, and Washington no longer accept checks. Work with your AP department to get permission for ACH credit or debit payments prior to filing to those states. South Carolina will accept a check, but only if you can prove you are unable to make electronic payments.
A few states will accept checks but require electronic payment if you are remitting above a certain dollar amount. These states include California (if $20,000 or more) and New Jersey (if $50,000 or more). Texas bases the requirement on the previous year’s filing. If you reported $100,000 or greater with the previous year’s filing, you are required to pay via ACH credit or debit the following year. Connecticut prefers electronic payments if you are reporting $50,000 or more.
Understanding the state delivery and payment requirements is important for complete report submissions. Best of wishes for a successful fall filing season!
Author: Danielle Herring
Product Manager, UPExchange
Labels: Unclaimed Property, UP Best Practices, UP Compliance