Repayment of Overpaid Wages

Policy Summary

Faculty and staff are responsible for reviewing their payment stubs or direct deposit notifications immediately upon receipt and notifying their supervisor and Payroll Services immediately of any overpayment so the appropriate action can be taken to repay the university in a timely manner.  This policy is necessary for proper and accurate accounting of university funds, and to identify employee and department responsibilities regarding overpayments of wages. 

Who is Governed by this Policy 

• Staff
• Faculty
• Student Employees

Policy

Occasionally, due to error or inadvertence, employees may receive an overpayment of salary or wages or other compensation, i.e., more than what the employee was entitled to receive. Employees should take care to review payment stubs immediately upon receipt to determine whether proper payment has been remitted.  Employees and departments that discover an overpayment of wages must notify Payroll Services immediately so assistance can be given in determining the accurate amount the employee was overpaid.  When Payroll Services discovers an overpayment, the department manager and/or Finance Director of the overpaid employee will be notified and will be responsible for communicating to the employee that they were overpaid and the amount of the overpayment.   

In all cases, upon being notified of the overpayment, the employee must immediately repay the university the total amount of the overpayment.  If immediate repayment causes extreme hardship, the employee may request an extended payback period not to exceed sixty (60) days.  This request must be made in writing and approved by the appropriate Vice President.  A request of a payback period beyond sixty (60) days requires approval of the appropriate Vice President and the Executive Vice President and CFO or the President. 

An employee may elect to repay the university by payroll deduction, upon written approval by the employee to Payroll Services.  An employee may provide written approval via e-mail to [email protected] or by using the Repayment of Overpaid Wages Agreement.  Written approval for payroll deduction or repayment checks should be submitted to: 

Attention:  Director, Payroll Services 

Payroll Services 

44983 Knoll Sq., Suite 391

Ashburn, VA 20147 

When an overpayment is charged to a sponsored project, the overpayment must be removed from the sponsored project and charged to the home department. The home department will be credited when the overpayment is repaid. 

Violations of this policy by active employees may result in disciplinary action up to and including termination.  The university reserves the right to take additional steps to recover overpayment and related collection fees, if necessary, as permitted by applicable law.

Forms

• Repayment of Overpaid Wages Agreement
• Repayment Agreement for Former Employees

Related Information

• Cost Transfers on Sponsored Agreements Policy 
• Financial Transactions Adjustment Policy 
• Identification and Treatment of Unallowable Costs Policy 

Contacts