Written acknowledgement also protects you if the employee claims you took too much out of future paychecks. 0 Once a repayment plan has been determined, the employee will sign an Employee Acknowledgment of Overpayment/Authorization to Reduce Wages Form. When an overpayment occurs, the repayment must be within the same tax year. 3315 apply to this matter. 93 0 obj <>/Filter/FlateDecode/ID[<9B4C546264DFC04798DF39DE9B23CEA3>]/Index[78 24]/Info 77 0 R/Length 79/Prev 24994/Root 79 0 R/Size 102/Type/XRef/W[1 2 1]>>stream Let’s start with the basics: According to the Fair Labor Standards Act (FLSA), employers that make a one-time overpayment to an employee can recoup the overpayment by deducting that amount from the employee’s next paycheck. Adjustments will continue until the total amount of the overpayment has been repaid or I request to stop the adjustments in writing. Keep a copy of the signed version of the policy for each employee's personnel file.) The below letter may be used to inform an employee of an inadvertent overpayment of wages, secure the employee's acknowledgment of the overpayment and obtain the employee's authorization to recoup the overpayment via payroll deductions. endstream endobj 79 0 obj <>/Metadata 4 0 R/PageLayout/OneColumn/Pages 76 0 R/StructTreeRoot 8 0 R/Type/Catalog/ViewerPreferences<>>> endobj 80 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/StructParents 0/Tabs/S/Type/Page>> endobj 81 0 obj <>stream The overpayment amount presented represents net pay plus any deductions that cannot be collected by the agency. According to the DLSE, deducting from a final paycheck for prior overpayments violates the law because it deprives the employee of all final wages. The Company takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck and that employees are paid promptly on the scheduled paydays. When any employee is suspended as a result of a labor dispute and such labor dispute involves those employees who process the payroll, the employer may have an additional ten (10) days in which to pay wages. 78 0 obj <> endobj The campus/department should discuss the issue with the employee and also have them sign the Overpayment Acknowledgement & Wage Adjustment Authorization form to withhold from a future payment. An employee is responsible for reviewing the employee’s pay statements after each pay period to ensure there are no discrepancies in pay. Within one week, Payroll will e-mail the Employee and cc: Department and Finance Center Ops Manager/Director with an overpayment notification. endstream endobj startxref If you overpaid someone. ©  2020 - Curators of the University of Missouri. The gross amount the employee should have been paid. Retain a copy of the authorization form with the department payroll records for the pay period in which the overpayment occurred. But an employer is not allowed to take the money out of the employee's paycheck without the employee's permission. Published by Human Resource Services, 801 Conley Avenue, 15 Jesse Hall, Columbia, Mo. h�bbd``b`�$���t �rH0���l&����� n�Y�1 D(����Y������~ �� (Keep in mind state regulations can differ.) The signed acknowledgement of overpayment/authorization to reduce wages form documents that the employee was informed of the right to dispute the amount of overpayment and agreed to the method of repayment. h�b```�,�_����(����a���=�� ��bF%^&��G\�.,n��t�ϭ����� `u�� �X��u�10$xAD# ��$ Learn more. When an employee becomes aware of an overpayment or underpayment, the employee is responsible for reporting it directly to Human Resources and to the employee’s department administrator. HRMS Correction - Finance Center Finance Center will make the necessary HRMS coding changes so the employee is paid correctly in the future and additional overpayment of funds is avoided. 3. The overpayment was a matter of collusion between the employee and the employer and the employee does not give back the overpayment. A miscellaneous deduction will be entered in the payroll system so that the overpayment can be recovered if the employee is later rehired. Additional comments: _____ _____ _____ Employee Signature Date . Mr. , I wish to draw your attention to certain matters relating to salary overpayments: (i)Despite any Act or rule of law to the contrary, an officer is liable to repay to the State any money paid to him or her by the State to which he or she was not entitled. UMB Policy VIII 99.02 Compensation Overpayment and Recovery and Financial Services Standard Operating Procedure No. An alternative, in instances of genuine administrative error, is to request a refund of the overpaid superannuation contribution directly from the employee’s superannuation fund. The employer chooses to overlook the error and the employee keeps the payment. _____ _____ Employee Signature Date . You have the right to deduct money from an employee’s pay if you recently made a simple overpayment. The employee refuses to pay back the amount. Getting a signed, written acknowledgement from the employee protects you in the event you have to deduct money to cover the overpayment from the employee's check without his or her consent. Top Ten Tips Disclaimer (Note for employers: Do not include the information in parentheses here in any actual form that employees sign.Texas Payday Law Rule 821.28(b) requires written authorizations for deductions to be as specific as possible as to the amount and purpose of the deduction and to make it clear that the deductions will be made from the employee's wages. 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