Note: The above process must be followed even if the employee has resigned. Another deduction is recorded in the payroll system so that the overpayment can be claimed if the employee is subsequently reinstated. The Columbia Payroll Office does not reduce an employee`s salary without the employee`s written permission or proof that the employee has received due process prior to a pay cut. Proof of due process is provided by providing a copy of the letters sent to inform the employee that wages will be reduced if they fail to repay the debt or provide information to determine that there has been no overpayment. If an employee does not refuse the overpayment, there is no need to send either letter. The signed confirmation of the overpayment/salary reduction authorization attests that the employee has been informed of the right to dispute the amount of the overpayment and has accepted the method of reimbursement. In practice, if an overpayment is discovered after a certain period of time, the employer may be advised to discuss it first with the former employee and try to agree on a repayment plan over a certain period of time. In some cases, it may be convenient for the employer to write off some or all of the overpayment instead of participating in a lawsuit to claim the full amount. However, each case must be examined in terms of its individual facts. If an overpayment is only discovered after an employee leaves and refuses to make a voluntary refund, the employer should consider legal options.
These may include: Deductions from wages to correct an overpayment can be made in the form of a lump sum or a series of payments. However, employers should notify employees and obtain their consent prior to deductions. If the overpayment is large, spreading the recovery over a period of time will help avoid disputes. Ideally, a recovery agreement should be concluded in writing and signed by both parties. The agreed adjustments can then be made in the payroll accounting. However, workers and employees are protected from unlawful deductions from their wages under section 13 of the Employment Rights Act 1996. The exception is section 14 of the Act, which provides for the case of overpayment, so that employers can make a deduction and correct the error. In addition, an explicit provision in many employment contracts allows corrections in case of billing errors. If an employee is overpaid, they can either write a personal check or approve a salary reduction to cover the refund. Note that the process on the Columbia campus is different from the entire UM system process. The employer has the right to claim overpaid wages even if the employee has left the company.
However, if the employee has already left, it may be more difficult for employers to claim excessive payments. Action must be taken promptly if the last salary payment has not yet been made. If the balance has been paid, an informal claim for reimbursement may be made to the former employee. If they refuse, legal action may be considered – but success depends on the financial situation of the former employee, and attorneys` fees may cost more than the amount in question. If the employee does not respond when verbally informed of the overpayment or does not repay the overpayment on time, the following steps must be followed: If an overpayment occurs, the refund must be made in the same taxation year. In exceptional situations where the overpayment occurs in one taxation year and is only discovered in the following taxation year, additional steps and documents are required. The following information applies to refunds made in the same taxation year. The employee may defend himself against a claim for reimbursement on the grounds that he or she has been deceived into believing that he or she is entitled to the money and that he or she relied on the money in good faith (i.e., honestly). This usually means that the employee has spent or used it to pay off an outstanding debt. Unless it is the employee`s fault that he was overpaid, he has the opportunity to defend any claim.
You can use the menus at the top of this page, view our sitemap or browse our website: if the employer has accidentally overpaid an employee, the employer has the right to recover this money. Texas Workforce Commission values: community, responsibility, innovation, responsibility, commitment to excellence and partnership. .