PAYROLL OVERPAYMENTS

If an employee has been overpaid by the University, the overpayment, as a legal debt, must be repaid in full. UHR Payroll Division will initially act as the collection agent for the University.

University Collection Method Notification of overpayment of wages will be provided to the employee. Repayment may be made by cash, personal check, or through payroll deduction (if actively employed) or by signing a notes receivable.

If payment or other approved arrangements are not made following this notification the following collection processes will occur:

Active employee: if employee is active within the University's payroll system; "auto recovery" will be implemented to reduce employees wages until overpayment is recovered in full.

In-Active employee: individuals who are no longer receiving compensation through the University's Payroll system, will be classified as a "delinquent" account and referred to the Bursars' Office for further collection action.

Payments Received/Adjustments

Current Calendar Year If repayment is made in the same calendar year as the overpayment, the amount repaid is deducted from employees' gross income.

Subsequent Calendar Year If repayment is made for an overpayment that took place in a prior year, UHR Payroll Division will reissue a corrected W-2 reflecting adjustments involving social security and Medicare taxes attributable to the overpayment year. It will be the responsibility of the individual to consult IRS Tax Publication 525 for information relating to reporting of "federal taxable wages" on individual income tax returns.

Departmental Adjustments pertaining to Overpayments The Departments which have been charged at the time the overpayments occurred will not receive credit, until the overpayment funds are collected in full.

Current April 1, 2002