Employees can be overpaid in even the most well-managed payroll department. Yes, it does happen when mistakes are made but it isn’t always the result of an error. Perhaps the employee received a sign-on bonus but did not stay for the required length of time. Or the employee was on an advanced vacation but is now terminating before they have fully earned the time. No matter the reason, overpayments can and do happen and must be handled properly. The first questions that usually arise relate to IRS regulations. What is required if the overpayment occurred this year? But what if it happened in a previous tax year, does that change the rules? Are the rules different for federal income tax than they are for social security or Medicare taxes?
Recouping overpayments is also much more complex than just adhering to the IRS code! Wage and hour law compliance must also be honoured when dealing with overpayments. Before the payroll department even needs to determine IRS requirements they must first determine if recouping the overpayment is even legal under the FLSA. Issues such as exempt employee status, minimum wage and overtime rules for non-exempt employees must be considered when recovering overpayments from employees.
And of course, the overpayment did not occur in a vacuum when it comes to state laws. Each individual state may have their own compliance issues involving wage and hour laws! Is there a time limit for recouping the overpayment in that state? Does the employee have to be notified in advance before the deductions can begin? Or does the state just say NO! to the whole process?
Join us for this information-packed webinar where industry expert speaker Vicki M. Lambert, CPP will discuss these regulations and more including the private letter ruling that governs the IRS requirements. Vicki will examine the FLSA requirements on recouping overpayments including the 1998 opinion letter that spells out these requirements. She will also discuss how to research to determine the state’s requirements for handling overpayments. Vicki will review the wage and hour laws of several states and the factors that they use to determine if an overpayment can be recouped.
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Date | Conferences | Duration | Price | |
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Jul 09, 2025 | Calculating Overtime in 2025: How to Get it Right Every Time | 90 Mins | $199.00 | |
Feb 19, 2025 | Payroll Deductions Demystified: What You Can and Cannot Deduct | 90 Mins | $199.00 | |
Dec 04, 2024 | Payroll Tax Updates for 2025 | 90 Mins | $199.00 | |
Sep 04, 2024 | Navigating Payroll Complexities: Handling Overpayments & Deductions with Confidence | 180 Mins | $299.00 | |
Jul 16, 2024 | 2024 Payroll Compliance Boot Camp: Navigating Overpayments, Deductions, and Taxation | 450 Mins | $399.00 | |
Jun 04, 2024 | Payroll Deductions in 2024: What Can and Cannot be Deducted from an Employee’s Wages? | 90 Mins | $199.00 | |
Apr 30, 2024 | Payroll Overpayments: Handling them Correctly in 2024 | 90 Mins | $199.00 |