Overpayment Example without Repayment The PTR preparer would begin by accessing the IDER screen in IPAY for information about the incorrect original transaction. Then an RX transaction would be processed on the EDLR screen using the original pay transaction as a source for most of the fields. Note: On the EDLR screen below, the ACU payment is a by agreement amount, so nothing is entered in the Time or H% fields. PPETLR0-E0967 Dept. Time Reporting 08/04/XX 10:07:06 04/23/XX 23:25:44 Late/Reduce Pay (EDLR) Userid: UXXXX ID: 602602602 Name: NOREPAY,NORA Emp Status: A Pay End: 083198 Check Date: 09/01/XX Pay Cycle: MO Page 1 of 1 C Seq: 00200 Tr: RX Per End: 053198 Pay Cy: M Dst: 11 E: E T: 9 D: Ttl: 3570 LACFPS: 4 611211 FT 20300 V0750 7 Rate: 00275.00 AH: A Prorate: DOS: ACU Time: H%: DOS: Hr: DOS: Hr: WSP: The preparer would enter comments on the Post Authorization Notification comments entry screen. The comments should include the reason for the transaction. UCECOM0-E0863 PostAuth Notification 08/04/XX 10:07:06 Comments Entry Userid: UXXXX Page 01 of 01 App: EDB Tran: Userid: UXXXX Date: 08/04/XX Time: 10:07:06 PAY - EDLR 602602602 NOREPAY,NORA Description of Content: ---------------------------------- Comments ----------------------------------- UXXXX Overpayment for May. Payroll please bill immediately. Thanks. Payroll Services must receive a copy of the PAN for this transaction in order to bill the employee. The preparer must notify Payroll Services by adding the Payroll email address to the Notification Preparation screen as shown below. Note: to access this screen, the user would press F10. UCENPR0-E0863 PostAuth Notification 08/04/XX 10:07:06 Notification Preparation Userid: UXXXX Page: 01 of 01 App: EDB Tran: Userid: UNXXX Date: ******** Time: ******** PAY - EDLR 602602602 NOREPAY,NORA Description of Content: -------------------------------- Notifications -------------------------------- C Address Type ----------- Name ------------- WTANG@FINANCE.UCLA.EDU M TANG, WEN LUNG PRLAI@AIS.UCLA.EDU M LAI, MABEL ROTSUKI@FINANCE.UCLA.EDU M OTSUKI, RON PAYROLL@FINANCE.UCLA.EDU U PAYROLL, NOTIFICATION When Payroll Services receives the ASAP notice, an overpayment will be processed and the employee will be billed via a series of letters. The original transaction on the EDLR screen will be bypassed by Payroll Services so that it will NOT be processed through the pay compute. Page 1 of 7
Overpayment Collection Process Payroll Services uses a series of three letters to employees in order to collect an overpayment. Employees that pay promptly may receive only the first letter. In this example, Nora Norepay was sent a series of three letters in an attempt to collect the overpayment. Copies of the following items are included with the first letter: The PAN that Payroll received from the department A worksheet used by Payroll to process the overpayment The Overpayment advice Letter #1 UNIVERSITY OF CALIFORNIA, LOS ANGELES CORPORATE FINANCIAL SERVICES/PAYROLL SERVICES 10920 WILSHIRE BLVD, SUITE 620 LOS ANGELES, CALIFORNIA 90095-6502 602602602 August 10, 20XX Nora Norepay 111 Main Street Thousand Oaks, CA 91362 Re: Salary Overpayment - $250.38 Dear Ms. Norepay: Our records indicate you were paid $819.45 (net earnings) on June 1, 20XX. There has been an adjustment per the attached EDB online notification. The overpayment is delineated as follows: Check Date Paid Should have Received Overpaid 06-01-XX $ 819.45 $569.07 $ 250.38 Total Overpayment $ 250.38 Enclosed are copies of the overpayment worksheet. I am sorry for any inconvenience this may cause you. Please make a check or money order payable to the Regents of the University of California and forward it to the Payroll Services. Should you have further questions, please contact this office by writing to the address listed above, by calling (310) 794-8725, or email creyes@finance.ucla.edu. Very truly yours, Cory Reyes Accountant I EE:aa Encl. Page 2 of 7
Enclosure #1 - PAN from Department Enclosure #2 - Overpayment Worksheet Page 3 of 7
Enclosure #3 - Overpayment Advice Letter #2 Since the Nora Norepay did not respond to the first letter, a second letter is sent out six weeks later. UNIVERSITY OF CALIFORNIA, LOS ANGELES CORPORATE FINANCIAL SERVICES/PAYROLL SERVICES 10920 WILSHIRE BLVD, SUITE 620 LOS ANGELES, CALIFORNIA 90095-6502 602602602 September 23, 20XX Nora Norepay 111 Main Street Thousand Oaks, CA 91362 Re: Salary Overpayment - $250.38 - SECOND NOTICE Dear Ms. Norepay: We wrote to you on August 10, 20XX to explain your overpayment of $250.38 in the check issued to you on June 1, 20XX. We requested that a check or money order be forwarded to this office. We are writing to remind you that the amount is still outstanding and to provide you with additional information concerning reporting of the overpayment. Internal Revenue Code Section 1341 states that an employee's gross earnings can be adjusted only if repayment is made within the same calendar year in which the overpayment occurred. In order for your 20XX overpayment to be adjusted on your 20XX W2 form, Payroll Services must receive payment by December 15, 20XX. Please remit the full amount of the overpayment without further delay, making your check or money order payable to the Regents of the University of California and forward it to Payroll Services. Should you have any questions, please contact this office by writing to the address listed above, by calling (310) 794-8725, or email creyes@finance.ucla.edu. Very truly yours, Cory Reyes Accountant I Page 4 of 7
Letter #3 About six weeks later, the third and final notice is sent to the employee. UNIVERSITY OF CALIFORNIA, LOS ANGELES CORPORATE FINANCIAL SERVICES/PAYROLL SERVICES 10920 WILSHIRE BLVD, SUITE 620 LOS ANGELES, CALIFORNIA 90095-6502 602602602 November 13, 20XX Nora Norepay 111 Main Street Thousand Oaks, CA 91362 Re: Salary Overpayment - $250.38 - FINAL NOTICE Dear Ms. Norepay: We wrote to you on August 10, 20XX and again on September 23, 20XX concerning your overpayment that was included in the check issued to you on June 1, 20XX. We requested that a check or money order be forwarded to this office. We are writing to remind you that the amount is still outstanding and to provide you with additional information concerning reporting of the overpayment. Internal Revenue Code Section 1341 states that an employee s gross earnings can be adjusted only if repayment is made within the same calendar year in which the overpayment occurred. In order for your 20XX overpayment to be adjusted on your 1998 W2 form, Payroll Services must receive payment by December 15, 20XX. Please remit the full amount of the overpayment without further delay, making your check or money order payable to the Regents of the University of California and forward it to Payroll Services. Unless we receive your payment by November 30, 20XX, we will turn your account over to an agency for collection without further notice. Should you have any questions, please contact this office by writing to the address listed above, by calling (310) 794-8725, or email creyes@finance.ucla.edu. Very truly yours, Cory Reyes Accountant I Overpayment Turned Over to Collection Agency In December, this account is turned over to collections. A bill is sent to the employee and the department receives a charge back for the overpayment via a journal entry. Page 5 of 7
Invoice from Collections Page 6 of 7
The Detail General Ledger for the month of January, 20XX shows the charge back to the department for the overpayment. FSO100 DETAIL GENERAL LEDGER RUN: 02/06/XX PAGE 57,483 FOR THE PERIOD 01/01/XX 01/31/XX 05:04:11 L-ACCOUNT/CC 4-611211/FT UNEX OVERHEAD AWARD NO. FUND 20300 UNIVERSITY EXTENSION FUND PI DEPARTMENT 5996 UNEX FUND ASSOCIATE FUND DATES 07/01/XX-12/31/YY EXPENDITURES: CURRENT MONTH TRANSACTIONS SUB TRANS- SQ DOCUMENT TRANSACTION APPROPRIATION EXPENDITURE ENCUMBRANCE MEMO-LIEN OBJECT SOURCE PROJCT TE DT POE NUMBER NO DATE DESCRIPTION REFERENCE PF ()=DEBIT ()=CREDIT ()=DECREASE ()=DECREASE 071080 V14560 53 31 1734 07D10 49 01/31/XX JAN PAYROLL 200.00 071900 V0750 53 31 9324 07494 08 01/31/XX NOREPAY,NORA 602606602 250.38 The second line on the detail general ledger (above) shows the charge to the department for the amount that Nora did not repay prior to December, 20XX as requested. The transaction number 07494 is made up of two parts. The first part 07 is for the 7th month of the fiscal year or January. 494 is a journal number used by Payroll for journals that relate to overpayments. A complete list of the journal numbers used for payroll related charges can be found in the PPS Manual, Section D1.1. Page 7 of 7