unclaimed property

Unclaimed Property and Escheatment for Contractors

Every uncashed subcontractor check, expired retainage check, and stale payroll check on a contractor's books is unclaimed property the company is legally required to report and remit to the state. Contractors are a high-risk profile for escheatment audits — high volume of small checks, constant address churn, and multi-state work. Here is how the rules work and how to keep outstanding checks from becoming an audit liability.