Compliance Processing

Hassle-free handling of uncashed checks and state requirements (ESCHEAT)

Most companies view their accounts payable process as a neat, closed-loop system. Services and goods are purchased, invoices are received and entered, payments are sent, and accounts are reconciled. But what happens when those checks aren’t cashed? And what about claim systems that issue thousands of checks each month? A percentage of these from every check run will never hit the bank. Uncashed checks can present real and unexpected problems for many companies. Each state in which you do business has its own requirements for handling “escheatage,” or unclaimed property. These requirements concern, among other things, the due diligence that must be performed for each check and the elapsed time before payments must be turned over to the state.


PayPilot’s Escheat Processing module is your compass for navigating these complicated state requirements. A special table in the PayPilot database allows you to capture all the due diligence regulations for each state. This table is then used to scan your outstanding checks and create an export file for payments meeting each state’s parameters. These export files can be used to generate letters and/or to feed into a third-party escheatage processing application. Correctly handling uncashed checks can become more than a nuisance for any business. It is an expensive, time-consuming, compliance hassle. But not if you stay on top of the problem with automated assistance from PayPilot.

Simplifying the collection of reportable payment information (1099 Processing)

When tax season arrives, groans can be heard clear across corporate America. The challenge always seems to be collecting all the necessary information for all those forms—in time to meet the state and Federal deadlines. Especially when a company has multiple systems, all separately processing their own set of payments. Those groans are noticeably quieter at Prelude’s clients. That’s because they use PayPilot’s 1099 Processing module to centralize all of their payment information, enabling the easy creation of 1099 forms and magnetic media. Leveraging our unique database architecture, this expansion module automatically identifies all payments that quality for 1099 reporting, combines them by tax ID, and creates an export file for a third-party processing application such as 1099Pro™ or Convey™.

1099 Reports

PayPilot also includes the capability to generate the following 1099 reports:

  • Reportable Summary – 1099-reportable payments are summarized by tax ID. The report lists payees whose total reportable payments during the period exceed the 1099 threshold amount.Reportable Detail – 1099-reportable payments are listed by tax ID for all payees whose total reportable payments during the period exceed the 1099 threshold amount.
  • Non-reportable Summary – 1099-non-reportable payments are accumulated by tax ID. The report lists payees whose total reportable payments during the period do not exceed the 1099 threshold amount. Both the reportable and non-reportable totals are printed for each of the payees.
  • Non-reportable Detail – 1099-non-reportable payments are listed by tax ID. An indicator on the report shows whether the payment itself was not reportable or the payment was reportable but the total payments for the payee for the period were under the 1099 threshold amount.

Thanks to PayPilot and the 1099 add-on module, the collection of reportable payment information is a breeze. In fact, no “collection” is even necessary as it already resides in the central data repository. Making tax season a rather ho-hum affair.