1. HRDC

2. Topics Approving Time Overpayments
Calculation Process (current vs prior years)
Repayment Options
Correction Entries (current vs prior years)

3. Approving Time
Reminder to have approval completed by approval deadline
Doesn’t “go away”; Must correct the timesheet or approve
Time Keepers have ability to be last resort approval

4. Approving Time MONTHLY EMPLOYEES Approve Payable Time
Monthly should report absences for entire month
Approvers should approve all absences regardless of date of approval deadline
Approve Payable Time
Make sure the End Date is updated to end of pay period for monthly
Drill into employee approval; do not approve with Select All

5. Select All Approval – NOT RECOMMENDED

6. Drill down Approval –RECOMMENDED

7. Approving Time - Payable Time Detail

8. Overpayments – Calculation Process
Overpaid/Repaid Same Tax Year
For a whole check
The net amount plus any MCU deduction should be repaid
For a partial check
Calculated checks are prepared to compare what DID happen to what SHOULD HAVE happened
The employee is asked to repay the difference

9. Overpayments – Calculation Process
Overpaid/Repaid Same Tax Year
For net repayment calculations, CAPS must manage the payroll calendar and job actions when attempting to calculate what SHOULD HAVE happened
Preview of calculation
CAPS calculated checks
Benefits have to be turned on
Ee has to be in same pay group (tax affect)
Can’t be in lockout
Must review ALL benefits and deductions

10. Overpayments – Calculation Process
Overpaid in prior tax year
Hiring Incentive Repayments are included
Repayment calculation is
GROSS overpayment less FICA on that gross
Departments should NOT perform this calculation
SS max issues
IRS Pub 15, p36:

11. Overpayments – Communicating with the Employee
Responsibility lies with the department
Obtain signed Acknowledgement of Overpayment form from employee regardless of repayment method
CAPS prepares and provides to department
Department can edit IF employee would like to make payment arrangements

12. Overpayments – Communicating with the Employee
Contacting the employee
/verbal
Web resources for no response from employee

13. Overpayments – Repayment Options
Repaying by Personal Check
Same tax year requires funds to be deposited into HRPO clearing account
Prior tax year requires amount to be deposited into overpaying department’s account
Repaying by Payroll Deductions
Deductions are collected in the HRPO clearing account regardless of tax year
Repayments for prior years will be JE’d to the overpaying department account

14. Overpayments – Repayment Options
Can employee repay over time or in installments?
Yes, but be reasonable
Increases repayment amount if repayments cross into the next calendar year
JE’s processed by Amy
Indicate information about WHO was overpaid WHEN and how/when the funds were collected
Accounting has to correct the account code after I submit
What’s reasonable?
No more than the number of checks overpaid
Consider collection efforts placed on HRPO (multiple CRRs, Account Recons, Recalculations for crossing years)

15. Overpayments – Records Correction
Prior tax years
Employee will receive a corrected W-2 (W-2c) once full repayment is received
If the employee was exempt from FICA, no W-2c will be issued
Informational only; File tax return with original W-2
Corrects only Social Security and Medicare taxes and wages
Employee may be able to claim credit or deduction for salary repayments on their tax return for the year they repaid the money – TALK TO TAX PREPARER
Department will receive amount repaid from employee and the Employer share of FICA
If Ee granted consent to receive the affected W-2 electronically, the W-2c will be available electronically as well.

16. Overpayments – Records Correction
Current tax year
A manual check will be processed through the next available pay cycle after full repayment received
Corrects employee gross wages, taxes and deductions as if the overpayment never occurred
Credits the department’s salary account and corrects flat rate charges
What if funds have been moved to cover overpayment?
Notify CAPS and the manual check will be updated to reflect the correct account
A manual check is a “memo” to the system
Has a special check number assigned
Is all negatives
Cannot be done to correct a specific pay period (i.e. can’t get it in by end of FY if monthly payroll has already confirmed)

17. Overpayments - Communications
Notification to Div HR/Fiscal Officers
Outstanding overpayments for the current year are generally communicated monthly