Ohio Annual Report of Unclaimed Funds: Filing, Fees, and Due Dates

One of your core responsibilities as a business owner is to comply with state regulations, including those regarding unclaimed funds. Unclaimed funds are assets like wages, refunds, or other forms of property that have been abandoned by their rightful owners.

Every year, businesses must file an Ohio Annual Report of Unclaimed Funds to ensure that unclaimed property is returned to its rightful owners or remitted to the state for safekeeping. Here’s what business owners need to know about the Ohio Annual Report of Unclaimed Funds, including fees and due dates, and how Mosey can streamline your state compliance.

What Are Unclaimed Funds?

Unclaimed funds are any assets that belong to someone else but have not been claimed for a specific period.

Several types of funds fall under the umbrella of unclaimed funds:

Uncashed checks (like payroll or vendor payments)
Unused gift certificates
Refunds or overpayments that haven’t been returned
Utility deposits that customers never collected
Bank accounts with no activity
Insurance proceeds
Stock dividends or other financial assets

If the owners of these assets do not claim them after a certain period, they are considered “unclaimed funds.” In this case, the business holding these funds must report them to the Ohio Division of Unclaimed Funds.

Why Is Reporting Unclaimed Funds Important?

Reporting unclaimed funds is a legal obligation for businesses in Ohio. Failing to report or remit unclaimed funds can result in penalties, fines, and legal action.

This is because unclaimed funds technically don’t belong to the person or organization retaining them. If you don’t make an effort to declare unclaimed funds and attempt to remit them to their owner, the situation is perceived as similar to theft.

The state of Ohio tracks and manages these assets using its Annual Report of Unclaimed Funds. When unclaimed funds are reported, the state holds them in trust until the rightful owner comes forward.

By reporting these funds, you’re helping ensure individuals recover money that is rightfully theirs, and maintaining your business’s regulatory compliance.

Who Needs To File the Ohio Annual Report of Unclaimed Funds?

Any business or organization operating in Ohio that holds unclaimed funds must file an annual report. Almost all organizations, including corporations, partnerships, LLCs, and non-profit organizations, are subject to reporting requirements.

Banks, financial institutions, insurance companies, public utilities, and retailers (especially those who issue refunds) are all subject to the same rules.

Even if your business doesn’t have unclaimed funds, you may still be required to submit a negative report stating that no unclaimed funds are being held. Check with local authorities regarding negative report laws that may impact the standing of your business.

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How Long Before Funds Are Considered Unclaimed?

The point at which funds are considered unclaimed varies depending on the type of asset. The state of Ohio uses a different dormancy period for each type of fund:

One year: Payroll checks, utility deposits
Three years: Vendor checks, business payments, refunds, credit balances
Five years: Bank or checking accounts, insurance proceeds
15 years: Traveler’s checks

Once the holding period has passed, businesses must report these funds as unclaimed in their annual report.

How To File an Ohio Annual Report of Unclaimed Funds

Filing the Ohio Annual Report of Unclaimed Funds involves a few key steps. It’s important to carefully follow these steps to avoid mistakes or delays.

Review Your Business Records

The first step is to review your business’s financial records to identify any unclaimed funds. This can include uncashed checks, forgotten refunds, or dormant accounts. Check your accounts payable, your payroll, and any other areas where you may have made payments that were not claimed.

Notify Owners of Unclaimed Funds

Before you can submit your report, Ohio law requires that you attempt to contact the owners of the unclaimed funds. This process is called due diligence.

If the amount is $50 or more, you’re required to send a written notice to the owners at least 30 days before filing the annual report. The notice should explain that the funds are about to be reported to the state unless claimed by a specific date.

Prepare the Annual Unclaimed Funds Report

Once you’ve completed your due diligence, the next step is to prepare your report. The Ohio Division of Unclaimed Funds provides specific forms and guidelines for this process.

You can download the necessary forms from their website, and for most businesses, the report can be submitted electronically through the Ohio Business Gateway.

The form will ask for some specific information, like:

The name and last known address of the owner
A description of the property (e.g., payroll check, refund)
The amount of unclaimed funds being reported
The date the funds became unclaimed

If your business has no unclaimed funds for the reporting year, you must file a negative report stating that no unclaimed property is being held.

Submit the Report and Remit Funds

After you’ve completed your report, you must submit it by the due date. If your report includes unclaimed funds, you must also send the funds to the state. Funds can be sent by check or electronic funds transfer (EFT). The Ohio Division of Unclaimed Funds will hold these assets until the rightful owner claims them.

What Are the Filing Deadlines for the Ohio Annual Report of Unclaimed Funds?

For most businesses, the Ohio Annual Report of Unclaimed Funds is due every year on Nov. 1. For life insurance companies, the deadline is May 1st. Mark this date on your calendar and ensure you complete your review, notify owners, and file the report on time.

What Are the Fees and Penalties for a Late Unclaimed Fund Report?

There are no fees to file the Ohio Annual Report of Unclaimed Funds, but failing to file on time or failing to report any unclaimed funds can result in penalties. Ohio imposes fines for late filings or failure to remit unclaimed property.

The most common penalty for failing to file is $100 per day, up to a maximum of $1,000. Additional fines may be imposed based on the amount of unclaimed funds not reported, as well as possible interest charges on late payments.

If you encounter any obstacles or delays in submitting the report, it’s vital to contact the Ohio Division of Unclaimed Funds as soon as possible to discuss your options.

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What Happens After You File Your Unclaimed Funds Annual Report?

Once you submit your annual report and remit the unclaimed funds, the state holds the property in trust for the rightful owners. Individuals who believe they have unclaimed property can search for it through the Ohio Division of Unclaimed Funds website and file a claim to recover their assets.

As a business owner, you’ve now done your part by reporting the unclaimed funds and transferring the assets to the state. After filing, keep a copy of your report and proof of payment for your records in case you need to refer to it in the future. The state will handle the rest of the process from here; you’ve transferred the responsibility out of your hands.

How To Stay Organized for Next Year

Keeping your financial records organized throughout the year makes the process easier for future filings.

Mark your calendar to begin reviewing your records and notifying owners well before the Nov. 1 deadline. Create a system for tracking unclaimed property throughout the year so you’re not scrambling to gather information at the last minute.

You must make a good-faith effort to contact the owners of unclaimed funds before filing. The state places the responsibility of due diligence on business owners. They’re happy to hold and remit unclaimed funds to their rightful owners, but only after businesses have already made a reasonable effort to do so on their own.

Failing to complete due diligence results in penalties. Taking a proactive approach to return funds throughout the year can simplify your reporting process at the end of the year while preventing potential non-compliance penalties associated with due diligence.

Maintain Compliance With Mosey

Filing an Ohio Annual Report of Unclaimed Funds is a critical task for businesses operating in the state. Staying organized, doing your due diligence, and filing on time ensures continued compliance with Ohio’s unclaimed property laws.

Mosey’s compliance management platform helps organizations track state and local compliance. If you’re required to file an Ohio Annual Report of Unclaimed Funds, we’ll help you keep your eyes on the deadline and walk through the necessary steps to complete your electronic forms.

Schedule a demo with Mosey to learn how we make business compliance easier.

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