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payroll errors

lrobblrobb 67 Posts
in Compensation Vote Up0Vote Down
employee overpaid, never reported it, error caught at end of year. How do you go about recouping the overpayment. Overpayment is a fair amount of money. and would have to be done over a year or more probably.
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  • 3 Comments sorted by Votes Date Added
  • marcmarc 3,126 Posts
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    We have had that happen. We went to the EE, explained the error (which she also should have caught, and since it was raise time, we computed how far into the year she would to go at current correct pay, to be caught up. In this case, it took 11 months.

    Once we were repaid, he raise implemented from that point forward.
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  • Peyton Irby MSPeyton Irby MS 139 Posts
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    Since the employee has received the money for his/her time, the recoupment can be done in the manner most likely to recoup the money. You can agree to withhold a set amount or a percentage of the amount owed per paycheck. Also, you need the to agree that if he/she leaves prior to repayment you can take the rest from the final check. Have the employee sign an agreement for the repayment.

    Peyton Irby
    Editor, Mississippi Employment Law Letter
    Watkins Ludlam Winter & Stennis, P.A.
    (601) 949-4810
    [email]pirby@watkinsludlam.com[/email]
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  • lrobblrobb 67 Posts
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    I appreciate your quick responses.
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