An overpayment occurs when an employee is paid for hours they did not work or paid at an incorrect rate. University of Arizona is required by law to recover these overpaid funds. A series of state and federal regulations govern the overpayment process. To comply with these regulations, an employee is required to notify their department immediately if they discover an overpayment on their paycheck. Departments should reconcile their payroll on a timely basis to ensure no employees have been overpaid.

Repayment Process

All wage or salary overpayments must be promptly reported to Payroll Department – Operations. Departments are not authorized to overlook or forgive any overpayment.

An active employee who discovers that he/she has received an overpayment of wages/salary must immediately notify the departmental administrator. Once the employee has received a notification from Payroll Department – Operations, the deduction/s of overpayment of monies will start on the pay check immediately after the notification.

A departmental administrator who discovers an overpayment or receives notice of an overpayment must immediately notify Payroll Department – Operations. The departmental administrator should notify the employee of the overpayment and help the employee work with the Payroll Department – Operations to start the payroll deductions.

It is the responsibility of the Payroll Department – Operations to make timely and accurate wage/salary payments to university employees based upon information provided by university departments and in accordance with applicable state and federal laws. When overpayments are identified it is the responsibility of Payroll Department – Operations to provide the departmental administrator overpayment calculation schedule to provide to the employee. Payroll Department – Operations will set up payroll deductions, which will be no more than 4 pay periods, and ensure all tax reporting is correct.

In the event of a final paycheck of an employee leaving University of Arizona employment, the full amount of the overpayment, up to the total amount of the final paycheck, may be deducted.

If an employee is not due a final paycheck due to an overpayment, he or she shall be notified in writing and expected to payback the overpayment monies in full. Once the monies are paid back in full, an adjustment will be made to the employee’s year-to-date earnings to ensure that their W-2 is correct.

If the funds are not paid back in full by the end of the calendar year, which the overpayment was identified, the University of Arizona will put a lien against the termed employee’s Arizona State Tax return until the full amount of the monies owed are paid back.