Overpayment Collection

Overpayment Collection

If W&M has overpaid an employee, the overpayment is considered a legal debt and must be repaid in full. The Payroll Department is responsible for initiating all recovery efforts once notified of the discrepancy. Departments should not attempt to collect overpayments on their own.

When a department or employee identifies an overpayment, they must notify University Human Resources (UHR), who will review the situation and forward the details to the Payroll Department for processing. 

For overpayments due to timesheet errors or other discrepancies, the department must provide all relevant information to UHR, including the date the issue was discovered, the period and amount of the overpayment, the type of overpayment (e.g., regular wages, leave payout, stipend), and the reason it occurred.

Frequently Asked Questions (FAQs)  

A single column table of collapsible content for formatting purposes with common questions.

What should I do if I notice that I've been overpaid? You must immediately notify University Human Resources (UHR) upon discovering any overpayment. UHR will review the situation and communicate with the Payroll Office to initiate the recovery process.

Can I ignore a small overpayment if it seems minor? No. Any overpayment, regardless of the amount, is considered a legal debt to the university and must be reported and repaid.

How will I repay the overpayment? If you are an active employee, you can repay the amount through personal check or payroll deductions. The repayment period should match the duration of the overpayment (e.g., a four-pay-period overpayment should be repaid over four pay periods).

What if repaying the overpayment causes financial hardship? You may request an exception if full repayment creates financial hardship. The request must include a written explanation of the hardship and a justification for not reporting the overpayment promptly. Exceptions are subject to approval by the University Controller.

Will my tax forms be affected? Yes. If the overpayment and repayment occur in the same calendar year, Payroll will adjust your taxable wages and issue a corrected W-2 if necessary. For overpayments from prior calendar years, you may need to repay additional taxes, and Payroll will provide guidance, including completion of a FICA Release Letter if applicable.

I am no longer employed at William & Mary. Do I still need to repay the overpayment? Yes. Former employees are still required to repay overpayments, which will be collected through the university's established collection procedures managed by the Accounts Receivable Office.

Can my department work directly with me to fix the overpayment? No. Departments should not attempt to resolve or collect overpayments independently. All overpayment cases must be coordinated through UHR and Payroll to ensure accuracy, compliance, and proper documentation.

What information should be provided when reporting an overpayment? Departments or employees must include the date the overpayment was discovered, the time period it covers, the overpaid amount, the type of payment (e.g., regular wages, stipend), and the reason it occurred. If applicable, departments must also correct related Workday entries.