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Overpayment

Payroll strives to pay employees correctly and promptly in accordance with approved transactions and time entries processed by departmental personnel each payroll cycle. We also understand that unexpected situations may arise with an employee or department which can cause the employee to receive compensation to which he/she is not entitled. If this happens, Payroll should be contacted as soon as the error has been discovered so they can assist with resolving the overpayment.
An overpayment is defined as compensation paid to an employee more than the amount owed for a given pay period. Overpayments are legal debts to the university and according to state law, must be repaid regardless of the origin, error or amount. Situations contributing to overpayments include, but are not limited to, delays in processing assignment changes for employees who go in a leave without pay status or separate from the university, data entry errors and changes in work schedule.

Notifications:

When departments become aware that an employee has been overpaid, they should notify Payroll immediately. An email should be sent to the Payroll which includes the employee’s name, TUID, applicable dates, and a brief explanation of the cause for the overpayment. Timing of this notification is the key to recovering overpayment. Payroll will then evaluate the situation, calculate the amount overpaid and respond accordingly.

 

Overpayment Responsibilities:

Departments are required to maintain an effective system of internal controls to prevent overpayments. All employees and departmental personnel who affect the pay process, including those who track and enter time, approve payroll, and produce and disburse payroll, have a responsibility to assist in producing accurate and timely payrolls.

 

Departments: Departments are responsible for monitoring payroll records and managing the financial resources for their respective areas. To that end, when an overpayment occurs, departmental contacts are expected to assist Payroll in efforts to recover funds in a timely manner and communicate directly with their employees. Additional payments should not be processed to employees who have been overpaid without first consulting with Payroll.

  • Ensure that employees have enough leave accruals available prior to approving requests for absence. 
  • Become knowledgeable about how to access available accrual balances.
  • Review employee time records in a timely manner to ensure that leave time taken is accurate.
  • Notify Payroll as soon as possible if an employee will be exhausting leave accruals so that a leave of absence can be processed immediately in the Payroll system.

If an employee terminates unexpectedly – the department should process the termination as soon as the supervisor is notified.

 

Employees: Employees are expected to review their payroll payments each pay period for accuracy, promptly report any discrepancies to their department, and repay the debt as required by state law.  Maintain adequate amounts of accruals and ensure that there are enough leave accruals available prior to making requests for absence.  Submit accurate and timely time records.

Payroll is responsible for reviewing each overpayment situation and ascertaining the best course of action for rectifying the error. They will manage the recovery process including canceling checks, reversing direct deposits, determining repayment options, calculating net overpayment amounts, depositing reimbursed funds, crediting the departmental account, correcting employee payroll records, and amending employee W-2 forms when applicable.  Determine if communication systems and/or processes need improvement; consider a lean review of internal communication processes to minimize the impact to salary overpayments.