How to Recoup a Wage Overpayment
Author: Alice Gilman
An overpayment of wages can occur for many different reasons. For example, it may be the result of inaccurate or delayed payroll processing, inaccurate accruals upon an employee's termination, payroll system failure or even clerical error. Regardless of the reason, an employee who is overpaid does not have the right to keep the overpaid amount and the employer is entitled to recoup it in full in a reasonable and timely manner.
The following steps will help an employer properly recoup overpaid wages from an employee in compliance with Internal Revenue Service (IRS) rules.