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Wage Overpayments

Directive Statement

This directive establishes the proper methods of handling wage overpayments.

Reason for Directive

Overpayments must be handled consistently and in a timely manner across campus.  In addition, it is essential to work to prevent overpayments from happening in the first place.  Overpayments can be prevented with the timely processing of ePAFs associated with terminations and other pay changes and the careful review and correction of employee Time & Labor records.  Several tools are available to help departments review paychecks, such as the Preliminary Paylists and Final Paylists.

Preliminary Paylists are available on Wednesday, Thursday and Friday during the week that includes the pay end date.  This report will reflect a non-exempt employee’s approved hours in the system as of the prior day and an exempt employee’s regular and approved exception hours as of the prior day.  Any Additional Pay entered by the department and approved by Levels 1 and 2 as of the prior day will also be included on the Preliminary Paylists.

Final Paylists are available on the Monday of pay day week and represent the hours and Additional Pay that an employee will receive for that pay period.  Timely review of the Preliminary and Final Paylists by staff who are knowledgeable about the department’s employees and the pay they should receive is the best safeguard to prevent wage overpayments.

Who must comply?

All UF employees and departments.

Active Employees

Active employees that receive an overpayment due to a change in time worked should correct the time via the Report Time function.  Click here for employee instructions on entering time depending on their classification.

  1. This correction will result in an adjustment on the next paycheck
  2. Contact Payroll Services if the change will result in the employee receiving a negative paycheck for the next pay period

The department will complete a Wage Refund Calculation Request when a former employee receives an overpayment that cannot be corrected using Report Time

  1. Employees will have to repay the net overpayment from the check they received
    • If the employee has any garnishments, or prior calendar year withholding taxes related to the overpayment, these will also need to be repaid to the University by the employee
    • If the employee’s repayment is not received within the same calendar year as the overpayment, any Federal Withholding paid on the net amount overpaid will also be due back to the University.  Adjustments may require additional tax reporting
  2. After the calculation is complete it will be emailed back to the appropriate departmental contacts for communication with the employee
  3. The department must contact the employee regarding the overpayment
  4. The employee will then need to make a check payable to the University of Florida and send it to Payroll Services (PO Box 113201, Gainesville, FL 32611)
  5. If the employee has not repaid the overpayment within four (4) weeks or set up a repayment plan, the employee will be sent a certified letter by Payroll Services
  6. If payment is not received within ten (10) days of receipt of the certified letter for an active employee, the department will be contacted so they may advise the employee that the overpayment will be deducted from his paycheck(s).  If the employee does not dispute the amount within 20 days of the certified letter, Payroll Services will use a deduction code of INTADV for this deduction
  7. Once the full amount owed has been received, the overpaid check will be reversed in myUFL within 3 to 5 weeks

Terminated Employees

If the overpayment occurs due to an employee termination, Payroll Services will need to be contacted immediately so the payment can be cancelled before the employee receives the incorrect amount.  The department will need to complete the Check-Advice Cancellation Form .

The deadline for direct deposits to be cancelled is 5:00 P.M. on the Monday following the payroll closing.  Requests may be submitted after this deadline but may not stop the direct deposit from going to the employee’s bank account.

If it is already too late to cancel the overpaid paycheck, then the following steps should be taken:

  1. The department will complete a Wage Refund Calculation Request for each of the pay periods an overpayment occurred on
  2. Former Employees will have to repay the net overpayment from the check they received
    • If the former employee has any garnishments, or prior calendar year withholding taxes related to the overpayment, these will also need to be repaid to the University by the employee
    • If the former employee’s repayment is not received within the same calendar year as the overpayment, any Federal Withholding paid on the net amount overpaid will also be due back to the University.  Adjustments may require additional tax reporting
    • If the employee has terminated from UF any FICA Alternative deduction as a result of the overpayment is included in the calculation
  3. After the calculation is complete it will be emailed back to the appropriate departmental contacts for communication with the former employee
  4. The department must contact the former employee regarding the overpayment
  5. The former employee will then need to make a check payable to the University of Florida and send it to Payroll Services (PO Box 113201, Gainesville, FL 32611)
  6. If the former employee has not repaid the overpayment within four (4) weeks, he or she will be sent a certified letter by Payroll Services
  7. If payment is not received within ten (10) days of receipt of the certified letter, and the terminated employee does not contact Payroll Services to set up a repayment plan, the matter is referred to a collection agency.
    • The collection agency will add a collection fee to the amount currently owed by the former employee.
  8. Once the full amount owed has been received, the overpayment check will be reversed in myUFL within 3 to 5 weeks

Definitions

Additional Pay

Earnings an employee receives in addition to regular pay.  It can also refer to a lump sum payment, such as a one-time payment, to someone outside of UF.

ePAF

Electronic Personnel Action Form (ePAF) is a form used to support HR transactions such as hires, retirements, terminations, reclassifications, etc. for Faculty, TEAMS, OPS, and students.

FICA Alternative

The FICA Alternative Plan is a defined contribution plan authorized under section 401(a) of the Internal Revenue Code.  Employees in certain temporary positions are mandated to participate in lieu of earning credit for Social Security.

Garnishment

A court order directing that money or property of a third party (usually wages paid by an employer) be used to satisfy a debt owed.

Paylist

Payroll listing available through Enterprise Reporting which provides a list of employees and identifying information, including the amount paid on a specific pay date.

Last Reviewed

05/01/2020: reviewed content

Resources

ePAF Types and Purpose

FICA Alternative Plan

Toolkits

UF HR Toolkit – Time and Labor

Contacts

Payroll Services: (352) 392-1231

Benefits: (352) 392-2477

Recruitment & Staffing: (352) 392-2477

UF Help Desk: (352) 392-HELP

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