Payments Owed by the City to Deceased Employees
When a City employee dies, the employee's family or beneficiaries may be entitled to certain payments. The family should first contact the employee's agency to see what payments, if any, are due. For the most part, the agency assists the family in providing the necessary forms and instructions for OPA to release the funds. In some situations, the agency may refer the family or other beneficiary to OPA for guidance.

Earned Wages
One payment might be for wages earned prior to death. This may be a partial or full payment for the time the employee worked during the pay period in which he or she died. If there is a will, final payment is made to the employee's executor or administrator, who must submit copies of:

• A Letter of Testamentary or Letter of Administration
• A copy of the death certificate to the agency
• A W-9 Form from the Executor or Administrator  

If there is no will, payments for wages are made to the next of kin, who may not be the deceased employee's designated beneficiaries.

Accumulated Leave
Accrued annual leave and compensatory time may be payable to the beneficiary designated by the employee. The beneficiary needs to provide:

• His or her Social Security number
• A copy of the death certificate
• Proof of identity such as a marriage license, birth certificate, passport, or driver's license
• A W-9 Form

If there is no will or no beneficiary form on file, the next of kin must provide his or her Social Security number and submit an affidavit certifying that he or she is the person legally entitled to the funds. Affidavit forms are available at OPA. If payments are designated to be made to a minor, the legal parent or guardian must provide court guardianship papers before funds can be released.

Back Pay
If a payment is due for back pay resulting, for instance, from a contractual settlement, the payment will be issued to the estate or next of kin as in the case of final wage payment.

Payment Procedures
For any type of payment, the agency produces a paycheck in the deceased employee's name and sends it to OPA with an Undistributed Check form and Pay Order. OPA issues a replacement check payable to the employee's estate, beneficiary, or next of kin.

If the employee dies after a paycheck was issued to him or her but before the check is cashed, the check should be returned to the employee's agency. The agency will forward the check to OPA. A replacement check will be issued to the estate or next of kin.


Other Payments Owed to Deceased Employees
The above payments may not be all to which the family or beneficiaries of a deceased employee are entitled. Death benefits may be available from the employee's pension system, Deferred Compensation Plan, Union, or Management Benefits Fund. The employee's agency can advise the family or beneficiaries which organizations to contact.

Learn more about the pension plans
Learn about the Deferred Compensation Plan
Learn more about the Management Benefits Fund


Death and Taxes
Payments made on behalf of an employee after his or her death, only during the calendar year in which the death occurred, are not subject to employee withholding taxes but must be reported on a W-2 statement for Social Security and Medicare tax purposes.

This is not so in the case of a deceased uniformed employee or DoE teacher who, at the time of death, was on long-term Line of Duty Injury (LoDI) leave continuously for more than six months following the month of injury. In this case, wages and accrued leave are not subject to social security and Medicare tax, regardless of the calendar year in which payment is made, by virtue of the employee's long-term LoDI status.

Payments made in the year subsequent to the employee's death are not subject to either withholding taxes or Social Security and Medicare taxes. However, all payments made to the next of kin or beneficiary are subject to withholding taxes in the name of the recipient. Form 1099-MISC will be sent to the recipient for the year in which the payment was made.

Visit the IRS Web site