Overpayment Recovery Process
Overpayment
Kansas State University employees are not legally entitled to receive more money than they earned for any given pay period.
An overpayment is defined as compensation paid to an employee more than the amount owed for a given pay period. Overpayments represent a legal debt owed to the university, which it has a duty and obligation to recover regardless of the origin, error, or amount. View forms and frequently asked questions below.
Common reasons for overpayment include
- Wage overpayments: timesheet errors, erroneous compensation rate, severance repayment, erroneous payment during unpaid leave of absence.
- Changes in work schedule: full-time to part-time employment, FTE adjustments
- Deduction errors: insufficient withholding (or the arrearage of) a mandatory employee-paid tax or deduction.
- Delays in processing: appointment changes, separations from the university, and other data entry errors.
Payroll works diligently to pay employees correctly and promptly in accordance with approved job, compensation, and time entry transactions each payroll cycle. Payroll will always try to accommodate late requests to make data adjustments, or make manual adjustments after published deadlines, if the department proactively requests assistance.
It is in both the department and Payroll's best interest to avoid overpayments. We understand that unexpected situations may arise with an employee or department which can cause the employee to receive an overpayment. If an overpayment occurs, Payroll should be notified as soon as the error has been discovered to assist in recovery efforts.
Overpayment Responsibilities
Departments are required to maintain an effective system of internal controls to prevent overpayments. All employees and department personnel who affect the pay process, including those who track and enter time, are responsible for helping produce accurate and timely payrolls.
Employees are expected to accurately report time worked, review their payroll payments each pay period for accuracy, and promptly report any discrepancies. If an overpayment has occurred, contact the department to determine the amount to be repaid. Repayment should be made as soon as possible, as required by state law.
Departments are responsible for monitoring payroll records and managing the financial resources for their respective areas. To that end, when an overpayment occurs, departmental contacts are expected to assist Payroll in efforts to recover funds in a timely manner and communicate directly with their employees. In the event of a known upcoming separation date from the University, please consult with Payroll PRIOR to final leave payouts, etc.
Payroll is responsible for reviewing each overpayment situation and determining the best course of action to correct the error. They are also responsible for managing the recovery process including calculating gross or net overpayment amounts, processing reimbursed funds, crediting the departmental account through payroll, and correcting employee payroll records when necessary.
Communication and Repayment for Current Employees
Departments will notify their employees, either verbally or with the Overpayment Notice from Department Form, that an overpayment has occurred and communicate with Payroll by completing the Overpayment Recovery Request Form. It is a department's responsibility to maintain communication with their employees throughout the repayment process. Payroll and the Division of Financial Services recognize the difficulty these conversations may bring. Communication and repayment of overpayments should be undertaken with discretion and in a way that preserves all parties' integrity. In some cases, the employee may be the one to identify the overpayment and contact Payroll.
Overpayment Recovery Process
- An overpayment has been identified.
- Payroll is contacted, the Overpayment Recovery Request Form is completed. The department confirms that the employee has been notified of the error. (The Overpayment Notice from Department Form may be used for this.)
- Payroll works with the department to calculate the amount of the overpayment and an Overpayment Reimbursement Letter is sent to the employee detailing the amount owed and repayment instructions.
- Payroll carries out the Overpayment Recovery Process to completion once all funds have been fully repaid.
Repayment Method
Repayment can be made utilizing the one-time payment method provided below. Payroll recognizes that repayment of funds may create a hardship for an employee. If this is the case, please work with Payroll to determine an acceptable repayment schedule for current employees through payroll deduction.
One-Time Online Cash Payment (Preferred)
- How to make an online payment directly to Payroll:
- Go to the DFS - Payroll Website at k-state.edu/finsvcs/payroll/
- Click on “Payment Center”
- Enter the Payment Amount:
- Note: This page accepts benefit payments and overpayments.
- Enter the Paycheck date: XX/XX/202x
- Employee ID Number: W0000XXXXX
- Best Contact Email: Enter your email address.
- Best Contact Number: Enter your phone number.
- Click the “Checkout” icon button and then enter your banking information.
- Notify the Payroll Team at payrl@ksu.edu once payment has been submitted.
Your payment will be verified and processed in the Payroll System, correcting your wages through the State of Kansas.