E-8-12 Payroll Overpayments

I. Purpose

To establish policies and procedures for the recovery of payroll overpayments. 

II. Responsibilities

1. Employee
   1. Notify department of an overpayment.
2. Business Officer/Department Administrator
   1. Notify Payroll Services of an overpayment.
   2. Collect overpayment from employee. 
3. Payroll Services
   1. Verify overpayment. 
   2. If approved, establish payment plan.

III. Policy

The University will seek reimbursement for all overpayments made to current and former employees. 

IV. Procedures

1. Departments are required to notify Payroll Services of any employee overpayment regardless of reason or cause. 
2. Departments are responsible for the collection of all overpayments from current and former employees in adherence with BPM E-2-10 Collection of Amounts Owed to the University from Overpayment.
3. Departments are to request immediate repayment of the entire overpayment amount.
   1. Employee or department may request Payroll Services to establish a payment plan for financial hardship cases.
   2. Payroll Services will review facts and circumstances and, if approved, establish a payment schedule for the outstanding balance.
   3. The employee will be required to sign an agreement of the repayment amount.
   4. Repayments must be completed by December 31 of the same year as the overpayment. Exceptions to this requirement must be approved by the Payroll Director.
4. After 90 days, uncollected overpayments will be charged to the employee’s unit where the payroll overpayment occurred.