State Agencies Bulletin No. 456

Undeliverable New York State Payroll Checks
Date Issued
January 30, 2004

This bulletin is superseded by Payroll Bulletin 1786.


To explain the:

  1. Impact the new Abandon Property law has on the undeliverable check process.
  2. Procedures that must be followed when a payroll check is undeliverable because the agency is unable to locate the employee.

Affected Employees

Employees whose New York State Payroll checks cannot be delivered because the agency is unable to locate the employee

Effective Date



Chapter 62, Part P of the Laws of 2003, Section 102 of the State Finance Law and Section 1315 of the Abandoned Property Law was amended on March 15, 2003 as follows:

  1. The period for negotiating New York State checks has been reduced from three years to one year.
  2. After the one year waiting period, the value of all unpaid New York State issued checks must be deposited into The New York State Abandoned Property Fund. The new Abandon Property law does not change the process for returning undeliverable paychecks.

Agency Actions

When a payroll check is undeliverable due to the agency's inability to locate the employee, the following procedures are to be followed:

  1. The check is to be held by the appropriate Agency Business unit;
  2. Within thirty days of the check date, the agency is required to make at least two attempts to locate the employee and deliver the check;
  3. If, after thirty days, the check cannot be delivered to the employee, the check must be returned along with copies 1 and 2 of Form AC-2714 "Undeliverable Payroll Check Report.

The check and Form AC-2714 should be sent for safe keeping to:

  • NYS Department of Tax and Finance, Division of Treasury
  • P.O. Box 22119
  • 2nd Floor
  • Albany, NY 12201-2119

Checks that are considered undeliverable are held for 3 months in The Division of Treasury and then destroyed. However, checks returned to treasury can be replaced for up to one year upon request.

OSC Actions

After the one-year waiting period checks will be deposited into the NYS Abandoned Property Fund. Subsequent claims for these funds must be directed to the OSC Office of Unclaimed Funds at 1-800-221-9311 within New York State, and (518) 270-2200 if calling from outside New York State.


Questions regarding this bulletin may be directed to the Payroll Deductions mailbox.