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Business and Financial Policies and Procedures

4.1.5 Handle Unclaimed Payroll Checks

Policy Statement

The University of Illinois System is subject to and complies with the Uniform Disposition of Unclaimed Property Act (Illinois Compiled Statutes, Chapter 765, Act ILCS 1025), as well as the escheatment laws of other states as they relate to uncashed checks.

Procedure

To handle unclaimed payroll checks:

  1. Mail payroll checks to persons who are no longer employed by the University.
  2. Complete the Return Payroll Checks form when unclaimed checks are for active employees.
  3. Submit the form with all unclaimed payroll checks to University Payroll and Benefits (UPB) within a week of payday.
  4. UPB holds unclaimed checks for 6 months from the date of issue. Employees may claim them at their campus Payroll Service Center during that 6 months.
  5. After 6 months, uncashed checks will not be honored by the University's bank and so are destroyed by UPB. The information for each check is recorded and the money reverts to a general University account.

Forms Used in this Procedure

Return Payroll Checks

Additional Policies and Procedures

To claim checks that have recorded in the unclaimed property database maintained by the Office of University Accounting and Financial Reporting (UAFR), consult State Regulations in Policy for Managing Receivables.

Additional Resources

Escheatment in Definitions
Uniform Disposition of Unclaimed Property Act (Illinois Compiled Statutes, Chapter 765, Act ILCS 1025)

Last Updated: June 30, 2011 | Approved: Senior Associate Vice President for Business and Finance | Effective: March 2010

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