What is the difference between a wage overpayment and a net overpayment?

Author: Alice Gilman

A wage overpayment occurs when the amount of a wage payment made to an employee for a pay period is greater than the amount the employee actually earned for the pay period. For example, an employee mistakenly receives two paychecks for a single pay period or a payment for an amount he or she did not earn.

A net overpayment is the amount of an overpayment made to an employee minus the employee's share of Social Security and Medicare taxes.