Payroll Repayment Agreement Letter

If an employee is overpaid, they can either write a personal cheque or authorize a salary cut to cover the refund. Note that the process on the Columbia campus is different from the entire um-system process. Columbia`s wage settlement agency will not reduce an employee`s compensation without the employee`s written authorization or proof that the employee obtained due process before reducing his or her salary. Proof of the correct procedure is provided by providing a copy of the letters sent to the worker informing the worker that wages are being reduced if he or she will not resusc user or provide information to establish that there has been no overpayment. If an employee does not dispute overpayment, it is not necessary to send both letters. The signed confirmation of the overpayment/authorization of the salary reduction form proves that the employee was informed of the right to challenge the overpayment amount and accepted the method of reimbursement. Note: The above process must be followed even if the staff member has resigned. Another deduction is introduced into the wage settlement system, so that overpayment can be recovered if the employee is subsequently rehired. In the event of overpayment, the refund must be made in the same tax year. In exceptional cases where overpayment is made in a fiscal year and is only discovered in the next fiscal year, additional steps and documentation are required. The following information relates to refunds made in the same tax year. If the employee does not react when informed orally of the overpayment or if the overpayment is not repaid on time, the following steps must be followed: