Overpayments

If at all possible, overpayment of an employee should be corrected by entering retroactive adjustments to reduce the employee’s current pay. These adjustments can be spread out over multiple payrolls if necessary.

 If entering adjustments is not possible, money should be collected from the employee and submitted to Central Payroll along with an overpay form and documentation.

Overview: An overpay acts like a cancel in CPPS, pulling back amounts from each earnings code and GTN as specified on the form. The amounts on the overpay form should be the differences between what the employee was paid and what the employee should have been paid. The amount the employee owes equals the net pay amount on the overpay form.


Completing the overpay form: You will need CPPS, the Overpay Calculation Worksheet, and the Overpay Form. The worksheet and form are both on the Central Payroll website under the “Payroll Forms”. 

First, look up what the employee was actually paid:

  1. In CPPS, go to Payroll History (55), Gross-to-Net Detail (005). Print the screen(s) for the payroll the employee was overpaid. Then go to Earnings Detail (004) and print the screen for the same payroll.

  2. Open the Overpay Calculation   worksheet. Enter the info from the Earnings Detail and Gross-to-Net Detail screens in the “Actually Paid” column.

Then, calculate what the employee should have been paid:

  1. In CPPS, go to Payroll Calculations (54), Check-it-Out Gross-to-Net (12). Enter the earnings that the employee should have been paid.

  2. If the employee had any of the following deductions, these same deductions must be entered in the Check-it-Out screen (use the same amounts from the overpaid payroll). These deductions are monies that cannot be pulled back from the vendors, and therefore cannot be included on the overpay form.

    1. PERA Life (GTN 059)

    2. Additional Direct Deposits (GTNs 181-185)

    3. Wage Attachments (GTNs 186-190)

  3. If the employee paid insurances on the overpaid payroll:

    1. If the employee is eligible for benefits in Benefit Solver, and has not subsequently covered that payroll’s insurances on a CHOP or through additional payroll deductions, the insurance amounts must be included on the Check-it-Out screen. Be sure that the amounts are equal to the amounts paid on the original payroll.

    2. If the employee is not eligible for benefits, or has since paid for that payroll’s insurances in another manner, the insurance amounts should be deleted from the Check-it-Out screen.

  4. If the employee paid local tax on the overpaid payroll:

    1. If the employee is still being paid the minimum amount of salary for his/her locality, the local tax amount must be included on the Check-it-Out screen.

                                                               i.      Denver – 0156 – $500/month

                                                             ii.      Aurora – 1503 – $250/month

                                                            iii.      Glendale – 2151 – $750/month

                                                           iv.      Greenwood Village – 0157 - $250/month

  1. If the overpay is large enough that the employee will not be paid the minimum amount of salary, the local tax amount should be deleted from the Check-it-Out screen.

  2. Once the Check-it-Out screen is completed, print the screen.

  3. In the Overpay Calculation.xls worksheet, enter the info from the Earnings Detail and Gross-to-Net Detail screens in the “Should Have Been Paid” column.


Filling Out the Overpay Form:

  1. Complete the ORG ID, Employee ID, and Employee Name fields.

  2. Enter the amounts from the “Difference” column on the spreadsheet. If an amount is negative in the “Difference” column, enter it as a negative on the Overpay Form. Required Fields:

    1. Gross Pay

    2. Net Pay

    3. Transaction Date: payroll date of overpaid payroll

    4. GTNs: GTN and amount

    5. Account Distributions: account, job class, earnings type, and pay end date of overpaid payroll. Gross amount from Worksheet, time should be difference of time on overpaid payroll and correct time worked.

  3. Have form reviewed, signed, and dated by authorized person.

  4. Send documents to Central Payroll

    1. Overpay form

    2. Print-out of Overpay Calculation 

    3. Money – check, CR, or IT in the amount of “Net Pay” from the Worksheet

                                                               -CR or IT coding: Fund 100, Agency 998, BS Account 2223

  1. Print-out of Check-it-Out screen

  2. Print-outs of GTN Detail and Earnings Detail for overpaid payroll(s)

Other Considerations:

  1. If the employee was overpaid on multiple payrolls

    1. The overpayment amounts may be combined on the Worksheet and Form. Break out each payroll under the Account Distributions, showing each Pay End Date. Use the most recent Pay End Date as the transaction date.

  2. If the employee was overpaid in a prior year

    1. Federal, state, and local taxes must be included on the Check-it-Out screen. The tax amounts must match the amounts paid on the original overpaid payroll. (We cannot pull back prior year taxes.)

  3. If you need more lines on the Overpayment Calculation Worksheet

    1. Contact Pam White in Central Payroll for an unprotected worksheet: 303-866-5806

  4. If you need more lines on the Overpayment Form

    1. Continue onto a second form. Put the Gross and Net Pay amounts on the first page only. Label each form (ex: “1 of 2”, “2 of 2”)