Overpayment Example without Repayment

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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

[email protected] M TANG, WEN LUNG

[email protected] M LAI, MABEL

[email protected] M OTSUKI, RON

[email protected] 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.

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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

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 [email protected]. Very truly yours,

Cory Reyes

UNIVERSITY OF CALIFORNIA, LOS ANGELES

CORPORATE FINANCIAL SERVICES/PAYROLL SERVICES 10920 WILSHIRE BLVD, SUITE 620 LOS ANGELES, CALIFORNIA 90095-6502

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Enclosure #1 - PAN from Department

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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

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

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Letter #3

About six weeks later, the third and final notice is sent to the employee.

UNIVERSITY OF CALIFORNIA, LOS ANGELES

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 [email protected].

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.

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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

Overpayment Example without Repayment