Deceased Employee Wages | KCTCS

Administrative Procedures

Deceased Employee Wages

Policy Number: 5.5.11-P

Current Effective Date: 07/01/2017

Original Effective Date: 04/01/2009

Revision Dates: 04/01/2009, 11/01/2015, 05/30/2017

Revision Number: 3

Revision Summary:

Responsible Official: Director of Payroll

References:

1. Purpose

To outline the process for handling wages of a deceased employee.

2. Scope

This procedure applies to payments due a deceased employee.

3. Deceased Employee

3.1

Upon the death of an active KCTCS employee:

  1. The KCTCS Office of Human Resources and KCTCS Office of Payroll Services are to be notified immediately. 
  2. The following items are required:
    1. The employee’s direct deposit account must be deactivated.
    2. All payroll funds currently in process, up to and including the day before a pay date, are to be reissued via paper check to the employee’s estate.
      1. If payroll funds have been finalized, payment will be for the net amount calculated. 
  3. Wages paid to employees after death are subject to different taxation than those paid prior to death.
    1. Wages paid after death, but within the same year as the death, are subject to social security and Medicare taxes. They are not subject to federal, state, or local taxes.
    2. Wages paid after the year of death are not subject to social security or Medicare taxes in addition to federal, state or local taxes. These wages should be paid through the Accounts Payable process and are to be reported on a 1099-MISC Form. 
  4. Funds will only be released to the administrator/executor of the employee’s estate as designated by the court. An order from the court assigning fiduciary responsibility is required prior to the release of any funds.