Amount PA Employer Can Pay to Surviving Family Increases to $10,000

Contributed by Carolyn A.W. Whitworth

An employer can now pay up to $10,000 of wages, salary, and employee benefits due to a deceased employee to their spouse, child, parent, or sibling (preference in that order) without the appointment of a personal representative of the employee’s estate.  This is an increase from the prior amount of $5,000 that could be paid.  An employer making such payment is released to the same extent as if the payment had been made to the employee’s personal representative, and the employer is not responsible for how the funds are applied by the recipient.  The effective date of the new provision is 60 days from October 30, 2017.  Pennsylvania House Bill No. 203, enacted as Act 41 of 2017, October 30, 2017.

For additional information contact Carolyn Whitworth.