Repayment options vary depending on when the overpayment occurred and when the repayment is made.
- If an employee is overpaid and the error is discovered in the current year, payroll will work with the employee to recover 100% of the overpayment within the current year.
Repayment options include:
- The payroll department can reverse the incorrect payment from the employee’s bank account and substitute the correct amount if it is found within 3 banking days of the error.
- The total net amount of the original payroll can be repaid by the employee by personal check and if the error was a portion of the original payroll event, the corrected net amount can be sent to the employee’s bank account. Payroll cannot accept partial repayments as entire payroll entries must be voided and replaced with the correct amount of pay.
- Salary reduction