Payroll Overpayments: Handling them Correctly in 2019

Live Webinar | CEU Approved

  • 90 minutes

Employees can be overpaid in even themost well-managed payroll department. Yes, it does happen when mistakes are made but it isn’t always the resultof an error.  Perhaps the employeereceived a sign-on bonus but did not stay for the required length of time. Orthe employee was an advanced vacation but is now terminating before he or she hasfully earned the time.  No matter thereason, overpayments can and do happen and must be handled properly.   The first questions that usually ariserelate to IRS regulations.  What isrequired if the overpayment occurred this year? But what if it occurred in a previous tax year, does that change therules?  Are the rules different forfederal income tax than they are for social security or Medicare taxes? 

Recouping overpayments is also muchmore complex than just adhering to the IRS code! Wage and hour law compliance mustalso be honored when dealing with overpayments. Before the payroll departmenteven needs to determine IRS requirements they must first determine if recoupingthe overpayment is even legal under the FLSA. Issues such as exempt employee status, minimum wage, and overtime rulesfor nonexempt employees must be considered when recovering overpayments fromemployees.

And of course, the overpayment did notoccur in a vacuum when it comes to state laws. Each individual state may haveits own compliance issues involving wage and hour laws!  Is there a time limit for recouping theoverpayment in that state? Does the employee have to be notified in advancebefore the deductions can begin?  Or doesthe state just say NO! to the whole process?

Join this session by expert speaker Vicki M. Lambert where she will discuss these regulations and more including theprivate letter ruling that governs the IRS requirements. We will examine theFLSA requirements on recouping overpayments including the 1998 opinion letterthat spells out these requirements.

Session Highlights:

Handling Overpayments under IRS andState Tax Codes:

  • Why a 1990 IRS Private Letter Ruling on handlingoverpayments apply today

  • Correcting overpayments in the same calendar taxyear

  • Why asking for the gross is better than the netcheck for prior year overpayments

  • Correcting FICA taxes for a prior year overpayment

  • Correcting FUTA/SUI taxes

  • Using Form W-2 or Form W-2cto report overpayments

Wage and Hour Laws and Their Impacton Recouping Overpayments:

  • The standards under the FLSA in terms of timeframefor recouping prior year overpayments

  • Is a written agreement for repayment alwaysrequired under the FLSA

  • Collecting overpayments from exempt employees andits effect on salary basis compliance

  • Recouping overpayments and its effect on minimumwage and overtime requirements

  • Can employers treat advanced vacation payments asoverpayments if an employee terminates

  • Where do the states stand onrecouping overpayments

Why You Should Attend:

We will discuss how to conduct research todetermine the state’s requirements for handling overpayments. We will reviewthe wage and hour laws of several states and the factors that they use todetermine if an overpayment can be recouped.

Who Should Attend:

  • PayrollExecutives/Managers/Administrators/Professionals/Practitioners/Entry LevelPersonnel

  • Human Resources Executives/Managers/Administrators

  • Accounting Personnel

  • Business Owners/Executive Officers/Operations and Departmental Managers

  • Lawmakers

  • Attorneys/Legal Professionals

  • Any individual or entity that must deal with the complexities andrequirements of Payroll compliance issues

You may ask your Question directly to our expert during the Q&A session.

** You can buy On-Demand and view it as per your convenience.

Vicki  Lambert

Vicki Lambert

Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations. 

With over 35 years of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today.

A pioneer in electronic and online education, Ms. Lambert produces and presents payroll related audio seminars, webinars and webcasts for clients, APA chapters and business groups throughout the country. Ms. Lambert is an adjunct faculty member at Brandman University in Southern California and is the creator of and instructor for their Practical Payroll Online program, which is approved for recertification hours by the APA. She is also the Program Developer, Subject Matter Expert (SME), and Facilitator for the Certificate in Payroll Practice and Management Program offered by Cengage Learning / Ed2Go through hundreds of colleges and universities across the country.

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Edupliance is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.5 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit

This webinar has been approved for 1.5 HR (General) re-certification credit hours toward California, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute. The use of this seal is not an endorsement by the HR Certification Institute of the quality of the activity. It means that this activity has met the HR Certification Institute’s criteria to be pre-approved for re-certification credit.

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