Overpayment Guidelines Rev 02-08
When an UM System, Kansas City, St. Louis, Rolla or Columbia employee has been overpaid:
The department is responsible for communicating the overpayment with the employee. Current employees can be sent an email to their university account while former employees will request that their former department send a letter on department letterhead, signed by the director/department chair via certified mail, return receipt requested to the employee's local home address notifying the employee of the overpayment (sample letter # 1).
When the employee responds a copy of the email or letter and a completed Acknowledgement of Overpayment form (provided by Payroll Shared Services) must be sent to the Payroll Shared Services office and the department should also keep a copy for their files.
There are two acceptable ways of repayment, on-line repayment using a bank account by Electronic check payment (ACH) or after-tax payroll deduction (available for active employees only). Once repayment is complete, Payroll Shared Services will take appropriate action to adjust wages/taxes for the impacted employee and return the funds to the salary expense account.
If the employee does not respond within the time stated in the email or sample letter 1, which is two weeks from the date of the first letter/email, a second email/letter (sample letter # 2), on department letterhead, signed by the director/department chair sent via certified mail, return receipt requested to the employee's local home address, notifying them that action will be taken to deduct the net-overpaid amount from a future payroll (the following pay period). A copy of this letter must be forwarded to the Payroll Shared Services office and one kept for the department file.
The University cannot legally withhold the amount from a future check without advance written notice (due process) to the employee of intent to withhold from their check. As stated in the letter, if the employee does not agree that they owe the amount specified, they may set up an appointment to meet with the department to present their reasons for not agreeing.
If the department receives a signed authorization form from the employee, the department will retain the original form with the payroll records and a copy must be sent to the Payroll Shared Services office.
If you have any questions about this procedure, please contact the Payroll Shared Services office.
Email or On Department letterhead……. SAMPLE # 1
To: Employee
From: Department
Subject: Salary Overpayment
Date: Date notifying the employee of overpayment
This is to inform you that you were overpaid a net amount of $ xxx for the pay period ending xx/xx/xx. Please review, sign, and return the enclosed Acknowledgement of Overpayment.
There are two repayment options available.. If you would like to repay by Electronic check payment (ACH) please indicate on the signed Acknowledgement of Overpayment form and access the . If you would like to repay through after-tax payroll deduction, please indicate that on the Acknowledgement of Overpayment form and return to the department for processing.
If you have not responded by xx/xx/xx, (two weeks from the notification date above), we will notify the Payroll Shared Services Office to deduct $ xxx, (the net amount of overpayment), from your gross pay for the pay period ending xx/xx/xx, (the following payperiod) which will be paid xx/xx/xx. (pay date)
If you do not agree that you owe this amount, please contact me by xx/xx/xx, and I will set up a time for us to meet to discuss this matter.
If you have any further questions please do not hesitate to call.
Email or On your Department letterhead…………. SAMPLE # 2
To: Employee
From: Department
Subject: Salary Overpayment
Date: Two weeks for date of the first letter
You were notified by letter dated xx/xx/xx that you were overpaid a net amount of $xxx for the pay period ending xx/xx/xx. We requested that you either contact us to provide information if you did not agree you had been overpaid or make arrangements for repayment.
Option 1 – use this paragraph if the employee contacted the department and based on the information provided the department still believes there was an overpayment.
On [date] we met and discussed the overpayment. Based on the information you provided, we still believe you were overpaid. Therefore, the Payroll Office has been notified to deduct $xxxx (i.e., the net amount of overpayment) from the next available paycheck.
Option 2 – use this paragraph if the employee failed to contact the department after the first letter.
You have failed to respond to our letter or provide any reason to suggest you do not owe the above amount. Therefore, the Payroll Office has been notified to deduct $xxxx (i.e., the net amount of overpayment) from the next available paycheck.
If you have any questions, please do not hesitate to call me at xxx-xxxx.
Cc: Payroll Office
Reviewed 2023-12-05