Review steps, important deadlines for correcting overpayments
When wrapping up your year-end tasks, be mindful of overpayments. Overpayments that are not repaid by the year’s end may result in employees owing additional funds.
Ensure there are no outstanding overpayments by following these steps:
- Review payroll registers immediately after payroll processing to identify errors and correct them before they become overpayments.
- When an overpayment occurs, correct the employee’s compensation records in a timely manner.
- Notify the employee of the overpayment and provide written notification to Employee Services by submitting a Notice of Overpayment Adjustment Form. Incomplete forms will be returned, which may delay repayment.
- Check journals to see if overpayments have occurred throughout the year.
If employees in your department were overpaid, complete the Notice of Overpayment Adjustment Form by Dec. 2, 2019. If you discover an overpayment after this date, please report it as soon as possible.
If the employee is no longer employed by CU and has not made the repayment by Dec. 31, 2019, federal and state taxes deducted on the pay in error will be added to the total owed.
To learn more, review the Employee Services Procedure for Overpayment.