Overpayment Guidelines Rev 02-08
When an UM System, Kansas City, St. Louis or Hospital employee has been overpaid:
(Columbia campus guidelines differ from the other campuses. Click here to be redirected to the procedure for processing Columbia campus overpayments.)
The department is responsible for sending a letter on department letterhead, signed by the director/department chair via certified mail, return receipt requested to the employee's local home address notifying the employee of the overpayment (sample letter # 1).
When the employee responds a copy of this letter and a completed authorization form (sample letter # 3) must be sent to the campus payroll office and the department should also keep a copies for their files.
If the employee chooses to repay the overpayment by writing the department a personal check for the amount due, the department will need to process a CRR. Please contact the campus payroll office with all the overpayment details, so that a manual check can be processed to reverse the funds from the department.
If the employee does not respond within the time stated on sample letter 1, which is two weeks from the date of the first letter, a second letter (sample letter # 2), on department letterhead, signed by the director/department chair sent via certified mail, return receipt requested to the employee's local home address, notifying them that action will be taken to deduct the gross-overpaid amount from a future payroll (the following pay period). A copy of this letter must be forwarded to the campus payroll office and one kept for the department file.
The University cannot legally withhold the amount from a future check without advance written notice (due process) to the employee of intent to withhold from their check. As stated in the letter, if the employee does not agree that they owe the amount specified, they may set up an appointment to meet with the department to present their reasons for not agreeing. The department is responsible for notifying HRS/Payroll that a meeting has been requested and the time and place the meeting will take place.
If the department receives a signed authorization form from the employee, it must be sent to the campus payroll office. For employees' paid biweekly and monthly, the department will retain the original with the payroll records and send a copy to the campus payroll office.
If you have any questions about this procedure please contact the campus payroll office.
On Department letterhead……. SAMPLE # 1
To: Employee
From: Department
Subject: Salary Overpayment
Date: Date notifying the employee of overpayment
This is to inform you that you were overpaid a gross amount of $ xxx for the pay period ending xx/xx/xx. If you would like to repay by personal check, please notify us and the net amount of the overpayment will be calculated by payroll and given to you. If you would like to have your next paycheck reduced to repay this overpayment, please sign the enclosed form and return as soon as possible.
Please see me as soon as possible about repaying this debt. If you have not responded by xx/xx/xx, (two weeks from the notification date above), we will notify the Payroll Office to deduct $ xxx, (the gross amount of overpayment), from your gross pay for the pay period ending xx/xx/xx, (the following payperiod) which will be paid xx/xx/xx. (pay date)
If you do not agree that you owe this amount, please contact me by xx/xx/xx, and I will set up a time for us to meet to discuss this matter.
If you have any further questions please do not hesitate to call.
Cc: Payroll Office
On your Department letterhead…………. SAMPLE # 2
To: Employee
From: Department
Subject: Salary Overpayment
Date: Two weeks for date of the first letter
You were notified xx/xx/xx, (date of first letter), that you were overpaid a gross amount of $xxx for the pay period ending xx/xx/xx. We requested that you contact us for the net amount of the overpayment, or return a signed authorization form.
You have failed to respond, therefore, the Central Payroll Office has been notified to deduct $xxxx, the gross amount of overpayment, from your gross pay for the pay period ending xx/xx/xx, (the following pay period) which will be paid xx/xx/xx. (pay date)
If you have any further questions, please do not hesitate to call the campus payroll office.
Cc: Payroll Office
SAMPLE # 3
Date:_______________________________
Name:________________________________
SS#_________________________________
Employee Id#_________________________
Department:__________________________
I authorize the University of Missouri-System to deduct a total of $_____________from my _________________payroll check, to repay an overpayment of salary that was received on ______________, for pay that was not due.
Signature:________________________________________
Reviewed 2019-08-05