Overpayment Recovery Form (Word)

Policy

Payroll overpayments will be recovered from employees either by payroll deduction or personal check. The recovery period will be as short as one payment cycle but will extend no longer than two months. Overpayments in excess of an employee’s normal period salary will be determined on a case by case basis by payroll, the department administrator and the employee. Funds recovered will be credited on the payroll cycle following recovery.

Discovery & Repayment

Payroll overpayments will be recovered from employees either by personal check or payroll deduction. If it is by payroll deduction, the recovery period will be as short as one payment cycle but will extend no longer than two months.

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Discovered BEFORE Next Scheduled Payment

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If the overpayment is discovered before the issuance of the employee’s next scheduled payment, the entire amount will be recovered on that next cycle.

• This can be accomplished either by docking pay via FFE or other time entry system or by payroll deduction. The department administrator will communicate the recovery process to the employee.
  
  
• If the recovery is for the employee’s entire pay, do not AWOP the employee in FFE. Complete the Overpayment Recovery Form and send it to Payroll. Payroll will ensure that required Benefits deductions are withheld before recovering the overpayment.

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Discovered AFTER Next Scheduled Payment

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If the overpayment is discovered after the issuance of the employee’s next scheduled payment, complete the Overpayment Recovery Form and the overpayment will be recovered over a period of two months unless the employee voluntarily returns the overpayment via personal check.

• Through payroll deduction:
  • Weekly employees will repay over 8 checks
  • ­Bi-weekly employees will repay over 4 checks
  • Monthly employees will repay over 2 checks
    

• Payroll will communicate the overpayment process via form letter with both the employee and the department administrator.
  
  
• Overpayments in excess of an employee’s normal period salary will be determined on a case by case basis by payroll, the department administrator and the employee.

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Terminated Employees

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Overpayment to terminated employees will be initiated by payroll via form letter to both the employee and the departmental administrator. Non-payment after 3 letters will be escalated to the appropriate authority for follow-up and legal action if necessary.

Monitoring & Reconciliation

Use the Earnings Register in Manager Self Service to monitor the status of an overpayment recovery. In PeopleSoft, there are five new overpayment recovery codes; each will appear as a negative value in the Earnings Register. For ease of reconciliation between systems, please use the chart below that maps the new PeopleSoft overpayment recovery codes to the Labor Distribution system.

Process Summary

1. Notify Payroll as soon as an Overpayment is discovered only if you want Payroll to calculate Overpayment or if Payroll is to initiate recovery via PeopleSoft.
   
2. If employee is issuing a personal check to repay, send check with the Overpayment Recovery Form to Payroll.
   
3. If employee is repaying via Payroll deductions, complete form and send to Payroll. Payroll will issue recovery letter to employee and email the DA a copy. Payroll deductions will start on the next check.
   
4. Use the Earnings Register in Manager Self Service to monitor the status of the overpayment recovery.

Workflow

Required Steps & Field Descriptions

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Step 1 – Employee Information

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Employee ID:

Last Name:

Employee Status:

Employee Rec #

First Name

Employee Type

Employee Pay Group

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Step 2 – Overpayment Information

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Pay Period of Overpayment:  Start Date and  End Date

Check Date

Gross Amount of Overpayment

Earnings Code

Overpayment Reason: Describe in details how the overpayment occurred.

Exercises

Exercise 1
Sample Completed Overpayment Recovery Form (PDF)

Scenario:  An active employee overpaid $2,000.00; discovery is after the next scheduled payment.

Exercise 2
Sample Completed Overpayment Recovery Form (Coming Soon)

Scenario:  Active employee overpaid less than full period, discovery is after next payment

Exercise 3
Sample Completed Overpayment Recovery Form (Coming Soon)

Scenario:  Terminated employee overpaid.