Docstoc

Filing an Unclaimed Property Report in Pennsylvania

Document Sample
Filing an Unclaimed Property Report in Pennsylvania Powered By Docstoc
					Filing an Unclaimed Property Report in Pennsylvania:
          An Employer’s Responsibility
    Filing an Unclaimed Property Report in PA




            How do I determine if my
             company has unclaimed
               property to report?




2
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property


             How do I determine if my company
              has unclaimed property to report?

            1.    Gather financial documentation




3
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property - Documentation

                     Documentation for Review
           • General ledger trial balances
           • Annual reports
           • Policies & procedures for handling outstanding and
             voided checks
           • Any prior audits performed (both internally or
             from an outside source)
           • Outstanding check report (from bank)
           • Voided check register
           • Accounts receivable aging report
           • Journal entries of amounts written off into income
           • Third-party programs (payroll, stocks, etc.)
4
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property


             How do I determine if my company
              has unclaimed property to report?

            1.    Gather financial documentation
            2.    Appoint person or team
            3.    Analyze financial documentation, identifying
                  potential outstanding debts
            4.    Research outstanding debts



5
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property - Research

                    Research Outstanding Debts

             • Outstanding checks
                  o Voided and reissued
                      • Did it ever clear?
                      • Remove issue or move to liability account
                  o Issued in error
                      • Remove issue
                  o Never reissued
                      • Perform due diligence
                      • Remove issue or move to liability account

6
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property - Research



                 Research Outstanding Debts (continued)

             • Outstanding credit balances
                  o Offset future purchases
                  o Refund check issued




7
    Filing an Unclaimed Property Report in PA
    Identifying Unclaimed Property


             How do I determine if my company
              has unclaimed property to report?

            1.    Gather financial documentation
            2.    Appoint person or team
            3.    Analyze financial documentation, identifying
                  potential outstanding debts
            4.    Research outstanding debts
            5.    Perform due diligence


8
    Filing an Unclaimed Property Report in PA




                Dormancy Triggers




9
 Filing an Unclaimed Property Report in PA
 Dormancy




        Dormancy Period –
        the amount of time a property is inactive
        while in possession of the holder




10
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers



                       Dormancy Trigger

                     • Checks
                       o Date check was issued
                       o Reissued checks do not restart the
                         dormancy period




11
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers


                             What about
                              IRA’s or
                               401k’s?
       What about a
       checking or
     savings account?                     What triggers
                                          dormancy on
                                            rollover
                                           accounts?
                     Do gift cards or
                     gift certificates
                      ever become
                        dormant?

12
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers – Customer Contact




                    What is considered
                     customer contact?




13
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers - Customer Contact



                Provable Customer Contact

                   • Letter
                        o Sent from owner
                        o Sent to owner, certified
                   • Email
                   • Customer login to online account



14
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers



     Four Most Commonly Asked Questions
                          What about a
                          checking or
                        savings account?




          • Demand Deposit Accounts
               o Last date of customer generated activity


15
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers



     Four Most Commonly Asked Questions
                            What triggers
                            dormancy on
                              rollover
                             accounts?



          • Certificates of Deposit
               o Last date of customer generated activity
                 once the contracted term has ended
16
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers


     Four Most Commonly Asked Questions
                           What about
                            IRA’s or
                             401k’s?

          • Retirement Accounts
               o Distributions at 59 ½ with string of
                 uncashed checks
               o Demandable distributions at 70 ½ with no
                 owner activity
               o Deceased owner
17
 Filing an Unclaimed Property Report in PA
 Dormancy Triggers

       Four Most Commonly Asked Questions
                               Do gift cards or gift
                                certificates ever
                               become dormant?



     Expiration   Post-sale charge/
       Date?            Fee?          Reportable?                 When?
        yes           yes or no            yes         2 years after expiration date
        no               yes               yes         5 years after date of issuance
        no               no                no                       ---
18
 Filing an Unclaimed Property Report in PA
 Dormancy Exceptions



              Exceptions to Dormancy

               •   PUTMA accounts
               •   Court-Ordered accounts
               •   Burial accounts
               •   Other active accounts with holder
               •   Property in litigation


19
 Filing an Unclaimed Property Report in PA




          Commonly Overlooked
             Property Types



20
 Filing an Unclaimed Property Report in PA
 Overlooked Property Types



     Commonly Overlooked or Questioned
                Properties
     •   Payroll cards             • Credit balances under B2B
     •   Accounts receivable       • Property held by police
     •   Retirement accounts         departments
     •   Health savings accounts   • Securities (stocks/dividends)
     •   Retained asset accounts   • “Unknown” property


21
 Filing an Unclaimed Property Report in PA
 Voluntary Compliance




                   Voluntary Compliance

          • 10 year look-back period
          • Remit overdue or overlooked property
          • Treasury waiver of penalties and interest




22
 Filing an Unclaimed Property Report in PA
 Web site



                    www.patreasury.org
• Forms                               • Instructions on reporting
     o   Voluntary compliance           Securities/Equity property
     o   Early remittance requests    • Reporting software links
     o   Extension requests
                                      • 2010 Reporting booklet
     o   Reporting
         (AP-1, AP-2, AP-3, TUP 40)   • Property types by industry
• Unclaimed property law              • Frequently asked questions
• Events

23
 Filing an Unclaimed Property Report in PA




                Reporting
            Unclaimed Property



24
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property




                        Reporting Deadline




              April 15th
25
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property – Electronic Reporting


                       Electronic Reporting
             • Required - 10 or more properties
             • Software
                 o HRS Pro - downloaded program
                 o ETM - web-based program




26
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property – Electronic Reporting




27
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property – Electronic Reporting


                       Electronic Reporting
             • Required - 10 or more properties
             • Software
                 o HRS Pro - downloaded program
                       800.379.3999 (PA Treasury)
                       report@patreasury.org
                 o ETM - web-based program
                       319.739.3557
                       uphelp@eagletm.com
                 o Excel templates for both programs
                 o Naupa II format
             • Reports must be sent via email or CD
28
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property – Manual Reporting



                         Manual Reporting
            • Permitted for less than 10 properties
            • Forms
                 o AP-1/Cover Sheet
                 o AP-2
                 o AP-3




29
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property – Tangible Reporting


           Tangible/Safekeeping Reporting
       •   Electronic reporting – preferred method
       •   Manual reporting (TUP-40 form)
       •   Separate file from intangible
       •   Some examples of property refused:
            o Miscellaneous papers
            o ACT 64 evidence
            o Weapons, used electronics
        717.772.2957 (Treasury’s Vault)
30
 Filing an Unclaimed Property Report in PA
 Reporting Unclaimed Property

           Information Submitted on Report
     •   Owner’s name(s)
     •   Last known address
     •   Social Security Number
     •   Amount
     •   Account/Case/Check Number
     •   Property type
     •   Property description
31
 Filing an Unclaimed Property Report in PA
 Report Information



              Why is the information on a
                 report so important?
          •   Efficiency – loading the report takes less time
          •   Finding the rightful owner/Due diligence
          •   Fewer questions from Treasury
          •   Paying the rightful and lawful owner
               o Joint ownership relationship (if applicable)
                      • Examples: Beneficiary, PUTMA, In Trust For, Joint Owner,
                        And, Or, Custodial, etc.

32
 Filing an Unclaimed Property Report in PA
 Report Information




                      Aggregate Reporting

                      • $49.99 or less
                      • Lump sums by property type




33
 Filing an Unclaimed Property Report in PA
 Report Information




                        Reciprocals

            • Treasury will accept a minimal amount
              of properties for other states
            • Accounts are reciprocated each year to
              appropriate state(s)




34
 Filing an Unclaimed Property Report in PA
 Negative Reporting



                      Is negative reporting
                            required?
          •   Not required by law
          •   Helpful for record-keeping
          •   Electronically file (Web site)
          •   Manually file


35
 Filing an Unclaimed Property Report in PA
 Common Errors


           Common Reporting Errors
 •   Amounts of payment and report do not match
 •   Report and payment are submitted at different times
 •   Fields contain incorrect information
 •   Assuming electronic reports are automatically sent from the
     software program
 •   Incorrect files are sent (outside vendors)
 •   Incorrect industry type
 •   Incorrect report year
 •   Illegible (manual reporting)
36
 Filing an Unclaimed Property Report in PA
 Reportable Dormancy Periods


                                                        Property with a 5-year
                                                          dormancy period
        Property with a 2-year                    (accounts receivable/credit balances, checking &
                                                    savings accts, certificates of deposit, accounts
          dormancy period                            payable & expense cks, stocks & dividends,
              (wages, commissions)                        miscellaneous uncashed cks, etc.)
     Transaction     Report                        Transaction          Report
        Dates         Year       Report Due           Dates              Year        Report Due
1/1 - 12/31 2008       2010     April 15, 2011   1/1 - 12/31 2005         2010      April 15, 2011

1/1 - 12/31 2009       2011     April 15, 2012   1/1 - 12/31 2006         2011      April 15, 2012

1/1 - 12/31 2010       2012     April 15, 2013   1/1 - 12/31 2007         2012      April 15, 2013

1/1 - 12/31 2011       2013     April 15, 2014   1/1 - 12/31 2008         2013      April 15, 2014

1/1 - 12/31 2012       2014     April 15, 2015   1/1 - 12/31 2009         2014      April 15, 2015


37
 Filing an Unclaimed Property Report in PA
 Reporting Reminders


            Reporting Tips/Reminders

       • Utilize excel template for entire year
       • Deadline: April 15th
       • Due diligence is not required, but
         recommended
       • Negative reports are not required, but
         recommended

38
 Filing an Unclaimed Property Report in PA
 Reporting Reminders


            Reporting Tips/Reminders

       • Utilize excel template for entire year
       • Deadline: April 15th
       • Due diligence is not required, but
         recommended
       • Negative reports are not required, but
         recommended
       • All amounts are reportable
39
 Filing an Unclaimed Property Report in PA
 Preparing for Next Year


             What can I do for next year?
     • Policies and procedures should be in place
     • Establish liability account
     • Monitor and document outstanding
       checks/credit balances
     • Monitor equity issues
     • Due diligence
     • Record retention policies should be in place
     • Internal controls should be in place
40
 Filing an Unclaimed Property Report in PA
 Reporting Instructions


• Address via Courier
        Commonwealth of Pennsylvania-Unclaimed Property
        Lockbox 53473
        101 N. Independence Mall East
        Philadelphia, PA 19106
• Address via Post Office
        Commonwealth of Pennsylvania
        Unclaimed Property
        P.O. Box 8500-53473
        Philadelphia, PA 19178-3473
• Payment
     o Checks made payable to: Commonwealth of Pennsylvania
     o Wire or ACH Transfer instructions available

41
 Filing an Unclaimed Property Report in PA
 Contact Information




                           Email Addresses:
                           General Compliance Questions:
                             report@patreasury.org (new)
                  unclaimedpropertyreporting@patreasury.org (old)



                       Submitting Unclaimed Property Reports:
                              unclholders@patreasury.org



42
 Filing an Unclaimed Property Report in PA




             Bureau of Audits &
                Enforcement




43
 Filing an Unclaimed Property Report in PA
 Act


         Pennsylvania’s Disposition of
     Abandoned and Unclaimed Property Act
                      72 P.S. § 1301.1-1301.28a

       • To ensure compliance, the Act provides
         Treasury with the responsibility and authority
         to examine the books and records of holders
         of abandoned and unclaimed property.



44
 Filing an Unclaimed Property Report in PA
 Bureau of Audits & Enforcement


         Bureau of Audits & Enforcement
     • In connection with Treasury’s responsibility and
       authority to examine the books and records of
       holders of unclaimed property – relevant factors in
       carrying out the mission for the Bureau of Audits
       and Enforcement:
        o Increase presence
        o Increase compliance


45
 Filing an Unclaimed Property Report in PA
 Bureau of Audits & Enforcement


        Enforcement Programs - Objective
     • Bring entity into immediate compliance. Perform
       enforcement action such that the entity comes into
       compliance in reporting all unclaimed property
       currently in its possession.
     • Bring entity into compliance for subsequent
       reporting years. Engage entity with the
       understanding that there is an obligation to report
       unclaimed property on an annual basis.

46
 Filing an Unclaimed Property Report in PA
 Bureau of Audits & Enforcement


           Enforcement Programs - Types
     • Full Unclaimed Property Audit
       o Thorough examination
       o Substantial Fieldwork (typically viewed in terms of
         months to complete)
     • Self-audit Compliance Review
       o Initial contact by audit staff, general discussion re
         unclaimed property and issuance of questionnaire.
       o Auditor follow-up

47
 Filing an Unclaimed Property Report in PA
 Bureau of Audits & Enforcement


                     Interest and Penalties
     72 P.S. §1301.24(b), Proceeding to Compel Reporting or Delivery,
       states,
       “If any holder fails, without proper cause, (i) to report or (ii)
       to pay and deliver to the State Treasurer property subject to
       custody and control of the Commonwealth under this
       article, such holder shall be liable to pay to the State
       Treasurer interest at the rate of twelve per centum per
       annum from the time such report should have been
       filed,…”


48
 Filing an Unclaimed Property Report in PA
 Contact Information


                              CONTACT US
                             Holder Hotline: 800-379-3999
                                  Vault: 717-772-2957
                       Securities/Equity Questions: 717-705-8429


                                        Email:
              General Compliance Questions: report@patreasury.org
      Submitting Unclaimed Property Reports: unclholders@patreasury.org
        Securities/Equity Questions: pasecuritiesmanager@patreasury.org



                                www.patreasury.org
49

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:4/12/2013
language:English
pages:49