[SchoolFinance] Deceased Employees

[Sue Lambert]

Our Finance Director had heard DW say something similar at a workshop but
it didn't seem to match what I was reading on the IRS site. I have seen
from searching online that some businesses get a "Last pay beneficiary
form" which would simplify things. Although if we just issue the check and
send it like DW has advised that is even simpler. I just don't see that it
aligns with the IRS requirements.


~Sue
Sue Lambert
MSAD #49
Accounting Coordinator
8 School St
Fairfield,  ME 04937
207-453-4200 x3109
207-453-0110 FAX
For in-district direct dial: 3109





On Thu, Jul 20, 2023 at 10:31 AM Katie Gourley <katie at rsu25.org> wrote:

> Our HR manager reached out to Drummond and Woodsum and advised us to pay
> them out like Lucie stated.  They said their bank accounts would be part of
> their estate if they set up one.
>
>
> Katie Gourley
> RSU 25
> Business Manager
> 207-469-7311
> katie.gourley at rsu25.org <katie at rsu25.org>
>
>
> On Thu, Jul 20, 2023 at 10:19 AM Lorraine Orlando <lorlando at rsu21.net>
> wrote:
>
>> I've also paid it out the same way as Lucie.
>>
>> Lorraine Orlando
>> Payroll/Benefits Specialist
>> RSU 21 Human Resources Department
>> (207) 985-1100 Ext. 1326
>> (207) 604-5990 (fax)
>>
>>
>>
>>
>>
>>
>>
>> On Thu, Jul 20, 2023 at 10:03 AM Field, Stacie <sfield at rsu16.org> wrote:
>>
>>> Unfortunately I have had to do this a few times as well.
>>> I did the same as Lucie - that is what all my research said to do.
>>> It is ridiculous they make you take out Medicare (and Social Security if
>>> applicable) from someone's last check.
>>>
>>> Stacie Field
>>> Business Manager
>>> RSU 16 - Poland, Mechanic Falls, Minot
>>> 207.998.2727 ext 102
>>>
>>>
>>> On Thu, Jul 20, 2023 at 8:55 AM Lucie Tabor <ltabor at vuesc.org> wrote:
>>>
>>>> When this has happened, we have paid out any remaining funds earned and
>>>> deposited to their regular bank account or mailed a check in their name to
>>>> the address we have on file, same as we would had they still been alive.
>>>> We also informed the Health Insurance (if they participated) and MePers
>>>> (if they were a member).
>>>> Lucie
>>>> VUESC
>>>> (SAD27, SAD33 and Madawaska)
>>>>
>>>> On Thu, Jul 20, 2023 at 7:54 AM Sue Lambert <slambert at msad49.org>
>>>> wrote:
>>>>
>>>>> Do any of you have employees/new-hires complete a beneficiary form for
>>>>> payroll (not benefits)? I have found a few online.
>>>>>
>>>>> We have unfortunately had a few employee's pass away this year and
>>>>> there seems to be a lot of complications about doing the 1099 form and
>>>>> getting a W9 in order to do that 1099. Not everyone gets an EIN # for the
>>>>> Estate. All of the research I have done says that the wages get paid to the
>>>>> Estate using the Estate EIN or to the beneficiary. With no Estate EIN, how
>>>>> do you legally determine the Beneficiary if there is no form? Do you ask
>>>>> for a copy of the will and use that to determine the beneficiary? Then that
>>>>> beneficiary would need to do a W9 form and I would think they should sign
>>>>> some type of beneficiary affidavit.
>>>>>
>>>>> Curious what your process is and if it would be simpler to have a
>>>>> "payroll beneficiary" form on file for all staff.
>>>>>
>>>>> I am familiar with the iRS rules about what is taxable and reported on
>>>>> the W2/1099 depending on payment in the same year or another. My question
>>>>> is really about determining who you should be paying out the wages to and
>>>>> what to get for documentation of that especially so you can file the 1099
>>>>> and also whether to start using a Beneficiary form for final wages.
>>>>>
>>>>> ~Sue
>>>>> Sue Lambert
>>>>> MSAD #49
>>>>> Benefits Specialist
>>>>> 8 School St
>>>>> Fairfield,  ME 04937
>>>>> 207-453-4200 x3109
>>>>> 207-453-0110 FAX
>>>>> For in-district direct dial: 3109
>>>>>
>>>>>
>>>>>
>>>>> _______________________________________________
>>>>> SchoolFinance mailing list
>>>>> SchoolFinance at maillist.informe.org
>>>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>>>
>>>>
>>>>
>>>> --
>>>> Lucie Tabor
>>>> *Director of Finance*
>>>> *Valley Unified Educational Service Center (VUESC)*
>>>> *Serving the School Districts of MSAD 27, MSAD 33 and Madawaska School
>>>> Dept.*
>>>> *Upper St. John Valley*
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>>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>>
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>>
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