Effective Date: |
July 19, 2017 |
Function: |
Payroll |
Contact: |
The purpose of this procedure is to outline the documentation and necessary steps that must be taken to process final wage payments for a deceased employee.
When an employee passes away, the Research Foundation for SUNY calculates any vacation and/or remaining pay due to the employee and issues a check to the employee’s beneficiary or to the estate if no beneficiary is designated.
Payment Made in Same Calendar Year:
If the payment is made in the same calendar year as the employee’s passing, Social Security and Medicare taxes are withheld from the payment to the beneficiary. Income taxes are not withheld. The employee’s W-2 for that year will show the Social Security and Medicare taxes taken and the will government credit the person for the Social Security and Medicare wages and contributions. The beneficiary will receive a 1099-MISC Box 3 "Other Income" for gross wage amount.
Payment Made in Next Calendar Year:
If this payment crosses calendar year (i.e. employee passes away in 2015 but the beneficiary is not paid until 2016) the entire gross amount due the employee is paid to the beneficiary. The beneficiary will receive a 1099-MISC Box 3 "Other Income" for gross wage amount.
Step |
Role or Responsibility |
References or Tips |
Operating location would send the following to the Central Office.
|
Operating Locations |
All documentation should be sent to the Corporate Payroll office. |
Operating locations must make the following changes in the Oracle business application:
|
Operating Locations |
For detailed instructions, refer to the work instruction: Change Assignment Data. For detailed instructions, refer to the |
Once all required documents have been received by Central Office Corporate Payroll, the following steps must be completed:
|
Central Office |
|
Once the documents have been filled out by the beneficiaries and notarized.
|
Operating Locations |
|
Upon receipt of fully-executed affidavit
|
Central Office |
|
None.
None.
RF Form: Deceased Employee's Final Wage Payment Information (pdf)
RF Form: Deceased Employee's Final Wage Payment Information (word)
Date |
Summary of Change |
July 19,2017 |
This procedure has been updated to comply with the new procedure template and has been revised for clarity. Updated links for the RF form: Deceased Employee’s Final Wage Payment Information, work instruction: Change Assignment Data, and work instruction: Enter or Update an Employee Labor Schedule |
April 19, 2005 |
Added link to W-9 Request for Taxpayer Identification Number and Certification. |
March 8, 2005 |
New Document. |
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