Which department of a company is best suited to handle the recoupment of wage overpayments?
Author: Alice Gilman
The answer depends on the repayment agreement between the employee and the employer. Accounts Receivable may be better equipped to handle wage repayments if the employee is writing a personal check to the employer. Payroll usually handles wage repayments when the employee opts for payroll deductions. However, Accounts Receivable must communicate this information to Payroll, which must file Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund, with the IRS and Form W-2c, Corrected Wage and Tax Statement, with the Social Security Administration.