**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  PAYROLL:  OVERPAYMENTS                     POLICY:  XII.L.1x

         
Notification and Collection of Overpayments

If an employee has been overpaid by the University, the
overpayment, as a legal debt, must be repaid in full.  The Payroll
Department will initially act as the collection agent for the
University.

University Collection Method

If the individual is a current University employee, Payroll will
notify the employee of the overpayment.  Payroll will then recover
the debt by deducting the amount of the overpayment from the
employee's next paycheck.  If necessary, this process will continue
until the entire debt is recovered.

If the individual is no longer a University employee, a notice
requesting repayment in full will be sent.  In accordance with
current University policy, if the debt is not satisfied, it will be
referred to the Accounts Receivable section of the Bursar's Office
for further collection action.

NOTE: Payroll does NOT have the authority to accept installment
payments. Repayments must be made in full.

The department which was charged for the overpayment WILL NOT
receive credit until ALL the overpaid funds are recovered.

Repayment of Prior Year's Overpayment

If a current University employee repays in the current year an
overpayment received in any prior year, the current year's gross
wages will be decreased by the amount of the repayment.  The amount
that gross wages are reduced cannot exceed the current year's gross
wages.

If a former employee repays in the current year an overpayment
received in any prior year, he/she should consult IRS Tax
Publication 525 - Taxable and Nontaxable Income - for information
on deducting the amount repaid on one's income tax return.

                                                                   
ISSUED BY:                                                 03/12/92
Assistant Comptroller for
Accounting Operations          12.12.1