Overpayment Process

Understanding Overpayments

An overpayment occurs when an employee is paid more than what is due. We understand receiving an incorrect paycheck can be concerning. However, regardless of how or why an overpayment occurred, as a state agency, Western Washington University is required by law to recover overpaid funds. If you are affected by an overpayment, we want to work with you and your unique situation to recover the funds as efficiently and painlessly as possible.

 

“Washington State Constitution Article VIII, Section 5 has been cited by the State Auditor’s Office when alleging overpayments: “The credit of the state shall not, in any manner be given or loaned to, or in aid of, any individual, association, company or corporation.” Washington State Constitution Article VIII, Section 5 has been cited by the State Auditor’s Office when alleging overpayments: “The credit of the state shall not, in any manner be given or loaned to, or in aid of, any individual, association, company or corporation.”

Understanding Responsibilities

Department Responsibility

  • Ensure job adjustment paperwork is submitted by deadlines
  • Accurate review of employee timesheets
  • Regularly run payroll impacting reports
  • Reporting overpayments to payroll via Timesheet Adjustment Requests
  • Explaining the overpayment to their employee 

Employee Responsibility

  • Alert their department and payroll of an overpayment when discovered 
  • Fill out timesheet correctly
  • Respond to the overpayment notification in the allotted time 

Preventing Overpayments

Common Overpayment Reasons:

  • Timesheets not reporting leave without pay or overreporting leave that was not approved
  • Not being aware of available leave balances when retroactively reporting leave 
  • Late terminations or appointment percentage reductions by the department 
  • Hourly employees inputting the wrong hours, such as switching AM and PM 
  • An input error by HR
  • Leaving Western after receiving a retention incentive before the number of required years has passed
  • Reporting an earn code that pays out at a 1.5 rate when not eligible
  • Double reporting late hours

Being aware of the above reasons ensures that you are keeping track of timesheet reporting, approval, and the hiring form processing within allotted deadlines. Deadlines for forms and timesheets can be found on the payroll website. 

Occasionally, an overpayment is caused by a mistake made by HR. We are always seeking out ways to improve our processes to ensure that this is not a common occurrence. 

How to Pay Back an Overpayment

Gross Repayment
Net Repayment

Failure to Choose a Repayment Plan

When an employee has not responded within 20 calendar days of the notification date, Payroll is legally obligated to send the overpayment to the General Receivables department for collection. 

Once Payroll has turned over the amount to General Receivables, payroll will no longer accept any payment from the employee. The employee will need to communicate solely with General Receivables.

Employees are responsible for all fees of collection, should it be necessary to place the amount with a collection agency or attorney. Fees will be based on a percentage with a maximum of 50% of the total debt. For repayments made outside of payroll, an interest of 1% will assessed by the close of business on the 15th of each month until the balance is paid in full. Any defaults on these debts may be reported to commercial credit reporting agencies and may adversely affect an employee’s credit rating. 

Employee Resources