Q1: What does “non-escheatment qualifying payments” mean? #
A: Under this agreement, all payments issued to Freelancers (1099) are considered “non-escheatment qualifying payments,” where allowed by state law. This means that if a Freelancer does not cash or deposit their payment within ninety (90) days, the payment will be canceled, and the funds are deemed forfeited. The company is not required to reissue canceled payments, and such funds will not be subject to escheatment laws unless otherwise required by applicable state law.
Q2: What happens if a state requires unclaimed payments to be reported as unclaimed property? #
A: In states with mandatory escheatment laws for unclaimed payments, the company will comply fully with those requirements. This includes adhering to the specific dormancy period, reporting obligations, and remittance guidelines for unclaimed funds. In states where non-escheatment qualifying payments are not allowed, this provision does not apply, and the company will handle unclaimed payments according to each state’s escheatment laws.
Q3: What is the ideal way for Freelancers to receive funds? #
A: For the best experience, we recommend that Freelancers receive payments via ACH (Automated Clearing House) or EFT (Electronic Funds Transfer), depending on the state or country where services are provided. ACH payments in the United States are especially reliable, as they allow funds to be directly deposited into your bank account, minimizing issues with uncashed checks and ensuring faster access to your earnings.
Q4: Will the company comply with state escheatment regulations? #
A: Yes. This agreement is designed to follow all state unclaimed property laws. If any part of this clause conflicts with specific state escheatment regulations, the applicable state law will take precedence, and the company will adjust its practices to ensure compliance.
Legal Disclaimer: This FAQ provides a general overview of non-escheatment policies and payment recommendations. If any provision here conflicts with state regulations, the company will modify its approach to remain legally compliant.