Payroll

Overpayments & Repayment Guidelines

An overpayment occurs when an employee is paid for hours that they did not work or were paid at an incorrect rate. As a state agency, the University of Toledo is required by law to recover these overpaid funds.

Rules & Regulations

Overpayment and Repayment Guidelines

IRS Publication 525 Information regarding salary overpayments in a prior tax year (page 34)

FLSA Q&A

 

Prevention

Departments – Majority of overpayments occur due to late paperwork. Please be diligent about timely paperwork. If an employee is on leave or terminated and is still receiving a paycheck, please contact the payroll department as soon as possible.

Employees – Review your paystubs regularly. Become familiar with your earnings, deductions, and pay schedule. If you have any questions, please contact the payroll department. As the saying goes, “better safe than sorry.”

Repayment Options

If the overpayment occurred in the current calendar year the employee is responsible for repayment of the Net amount. If all the funds are not repaid within the current calendar in which the overpayment occurred, all subsequent payments will be based on the gross amount of the overpayment.

The University of Toledo allows two options for repayment. If you are an Active Employee you can choose between a payroll deduction or by check/money order.  Separated Employees must pay by check/money order or have the amount deducted from their vacation/sick payout (if eligible).

If the overpayment is not resolved the payroll department may send the information to the Collections Department.

Last Updated: 3/1/17