Use these procedures to offset and collect an overpayment within Additional Payments (0015) and Recurring Payments/Deductions (0014) infotypes.
Use this procedure to transition an overpayment from a previous year that has crossed calendar years:
The employee’s master data must be corrected prior to offsetting or recovering an overpayment. Refer to Payroll Simulation - Find an Overpayment to determine overpayment amounts.
The following two generalized scenarios handle overpayment recovery within the same calendar year for an employee overpaid due to an incorrect time entry. The agency corrected the master data and ran a Payroll Simulation to determine the gross overpayment of $300.
SCENARIO 1: Authorization was immediately received from the employee to repay the entire amount out of the next payroll. In this scenario, no further action is required. Payroll will process, reducing the employee’s gross pay by $300 and the funds will return to the operating account.
SCENARIO 2: The employee didn't provide authorization of a repayment plan before payroll processed. Prior to payroll processing with the master data correction, the payroll processor will follow the Overpayment - Offset an Overpayment procedure to offset the gross overpayment in the period(s) of origin. Later, authorization is received from the employee and the employee agrees to repay the amount in three $100 payments within the current tax reporting year. The payroll processor will follow the Overpayment - Recover an Overpayment procedure to create a Recurring Payment/Deductions repayment plan.