Human Resources

Payroll Overpayment Collection Guidelines

If an individual receives pay that is in excess of the actual amount worked, reported, or required per their employment contract stipend, or civil service position, it is considered an overpayment. Overpayments can occur because of administrative errors, late separation notification, retirement, or data entry/time reporting errors, or other cause. Fiscal officers and Payroll staff are responsible for ensuring the accuracy of all timely payment to the staff, civil service, faculty, graduate assistants, and student employees of SIUE. SIUE is a state agency employer, and, in accordance with the Illinois Status Collection Act of of 1986 (30 ILCS 210/), the University must pursue and collect overpayments.

Overpayment Collection Process on Active Employees

When Payroll is notified by a department that an employee has been overpaid and receives an explanation as to how it occurred, Payroll will perform the following steps:

1. Confirm with the department that they have notified the employee immediately of the overpayment.
2. Verify the amount of the overpayment based upon review of the facts and the department's explanation.
3. Contact the employee by phone and/or email about the repayment options, and include the following:
   • Cause of overpayment (hours without pay, medical leave, decrease in salary/wages/appointment percent
   • Which payrolls were affected and provide the total overpaid amount
   • Explanation of repayment options and lack of response by the employee
     • Repay the funds in one lump sum by writing a check for the net amount, or
     • Repay by payroll deductions over a reasonable number of payrolls determined in conjunction with Payroll based upon the number of remaining payrolls for the employee per their contract and in the tax year, the amount of the overpayment, and the amount they were paid
4. Employees are warned that lack of reply will require Payroll to begin payroll deduction to recover the overpaid funds on the next scheduled payroll for the employee.
5. Employees who fail to respond are contacted and explained the deduction amount for the overpayment and the number of payrolls that will be affected.

When Payroll staff discovers an employee overpayment, we notify the department and follow the same communication process.

Overpayment Collection Process on Terminated Employees

When Payroll is notified by a department that a terminated employee has been overpaid and receives an explanation as to how it occurred, Payroll performs the following steps:

1. Confirm with the department that they have notified the former employee immediately of the overpayment.
2. Verify the amount of the overpayment based upon review of the facts and the department's explanation.
3. Contact the individual by letter and include the following:
   • Provide the cause of overpayment (late notice of termination to payroll, etc.)
   • Document which payrolls were affected and provide the total overpaid amount
   • Request for the individual to repay the net funds
4. If there is no response within 15 business days (3 weeks) from the first letter, a certified letter is mailed explaining that the amount will be turned into a debt due to SIUE and that it may be turned over for collection if it is not paid.
5. If there is no response within 10 business days (2 weeks) from the second letter, a certified letter is mailed that informs them that the amount has been turned over to the SIUE Bursar Office Collections staff for collection, and that this is no longer an overpayment issue.
6. The Bursar's Office Collection staff begins collection efforts, and will turn the account over to a collection agency if the debt to SIUE is not paid in full.
7. The Bursar's Office Collection staff will report the unpaid debt to the State, as required, to be included in the Comptroller Offset system.

When Payroll staff discovers an overpayment on a terminated employee, we notify the department and follow the same communication process.

Overpayment Collection on Graduate Assistants and Student Employees in Active Pay Status

When Payroll is notified by a department that a Graduate Assistant (GA) or Student Employee (SE) has been overpaid and receives an explanation as to how it occurred, Payroll performs the following steps:

1. Confirm with the department that they have notified the GA or SE immediately of the overpayment.
2. Verify the amount of the overpayment based upon review of the facts and the department’s explanation.
3. Confirm with the department that they have provided the GA or SE with the following information:
   • The cause of overpayment (decrease of stipend, late termination, incorrect pay rate used, etc.).
   • Explain which payrolls were affected and total overpaid amount.

If a Student Employee was overpaid because hours were reported in error, the department must contact payroll with an email explaining the payroll and hours in error.  The department should report the correct hours on all future payrolls.  Payroll will enter the hours reported in error with the Adjustment earn code 106 as a negative amount on the next feasible payroll, so that the hour correction is recorded in the system.

 

Payroll contacts the GA/SE and:

• Explains a repayment plan over a reasonable number of payrolls determined in conjunction with the number of remaining payrolls for the GA/SE, in the tax year, the amount of the overpayment and the amount they are paid.
• Gives notice to the GA/SE that lack of reply on their part will require Payroll to begin payroll deduction, to recover the overpaid funds, on the next scheduled payroll.
• Individuals who fail to respond are contacted by email and explained the deduction amount for the overpayment and the number of payrolls that will be affected.

When Payroll staff discovers an overpayment for a Graduate Assistant or Student Employee, we notify the department and follow the same communication process.

Overpayment Collection on Graduate Assistants and Student Employees in Terminated Status

When Payroll is notified by a department that a Graduate Assistant (GA) or Student Employee (SE) was overpaid and receives an explanation as to how it occurred, Payroll performs the following steps:

1. Confirm with the department that they have notified the GA or SE immediately of the overpayment.
2. Verify the amount of the overpayment based upon review of the facts and the department’s explanation.
3. Confirm with the department that they have provided the GA or SE with the following information:
   • The cause of overpayment (decrease of stipend, late termination, incorrect pay rate used, etc.)
   • Explain which payrolls were affected and provide the total overpaid amount.

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If a Student Employee was overpaid because hours were reported in error, the department must contact payroll with an email explaining the payroll and hours in error.  The department should report the correct hours on all future payrolls. 

Payroll will enter the hours reported in error with the Adjustment earn code 106 as a negative amount on the next feasible payroll, so that the hour correction is recorded in the system.

Payroll contacts the GA or SE and:

• Explains the amount of the overpayment will be added to their Student Account in the Bursar Office as a debt owed to SIUE.
• The Bursar’s Office Collection staff begins collection efforts and will turn the account over to a collection agency if the debt to SIUE is not paid in full. 
• The Bursar Office also reports unpaid debts to the state, as required, to be included in the Comptroller Offset system.

When Payroll staff discovers an overpayment for a terminated Graduate Assistant or Student Employee, we notify the department and follow the same communication process.