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Best practices for correcting overpayments

As you are closing out on all year-end deadlines, be mindful of overpaying employees.

Delay in repaying or processing of overpayments can result in additional funds that need to be recovered from employees. Taking steps to ensure there are no outstanding overpayments is important:

  1. Review payroll registers to identify errors and correct them before they become overpayments.
  2. Ensure timely correction of the employee’s compensation records when an overpayment occurs.
  3. Notify the employee affected that an overpayment occurred.
  4. Provide written notification to Employee Services using the required Notice of Overpayment Adjustment Form.
  5. Check journals to see if overpayments have occurred during the year.

If employees in your department were overpaid, be sure to complete the Notice of Overpayment no later than Dec. 16, 2016. If you discover an overpayment after this date, please report it as soon as possible.

If the employee is currently working for CU, then the overpayment taxes will be balanced out within the 2016 tax year.

If the employee is no longer employed by the university, and has not made the repayment by Dec. 31, 2016, federal and state taxes that were deducted on the pay in error will be added to the total owed.

To review Employee Service’s procedure and complete the Notice of Overpayment, visit the HCM Correct Pay page.

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