Certified Payroll Professional Practice Exam

Under what circumstances can the state laws regarding unclaimed property affect reissuing to employees?

1. After a short period of time only

2. After the original issue and a substantial period of time

3. Regardless of time passed

4. When the employer goes bankrupt

The correct answer is: After the original issue and a substantial period of time

State laws regarding unclaimed property may affect reissuing to employees after the original issue and a substantial period of time. This is because unclaimed property laws typically require businesses to turn over unclaimed property to the state after a certain period of time has passed since the property was originally issued. This can include uncashed payroll checks or other unclaimed wages owed to employees. By reissuing the unclaimed property to employees after a substantial period of time, businesses can ensure compliance with state laws and potentially avoid penalties for failure to report and remit unclaimed property. Option A is incorrect because state laws regarding unclaimed property typically do not have a specific short period of time requirement for reissuing to employees. Option C is incorrect because state laws do have specific timeframes for when unclaimed property must be turned over to the state. Option D is incorrect because the reissuing to employees is primarily impacted by unclaimed property laws, not necessarily the employer going bankrupt.