Handling Payroll Overpayments Correctly

Duration: 90 Minutes
This webinar discusses the issues that arise when an overpayment has been made in the payroll department. It addresses the requirements that must be followed for recouping the overpayment under IRS and wage and hour regulations.
IRS code
Instructor: Vicki M. Lambert
Product ID: 500455

Employees can be overpaid in even the most well managed payroll department. Yes it does happen when mistakes are made but it isn't always the result of an error. Perhaps the employee received a sign on bonus but did not stay for the required length of time. Or the employee was advanced vacation but is now terminating before he or she has fully earned the time. No matter the reason, overpayments can and do happen and must be handled properly. The first questions that usually arise relate to IRS regulations. What is required if the overpayment occurred this year? But what if it occurred in a previous tax year, does that change the rules? Are the rules different for federal income tax than they are for social security or Medicare taxes? We will discuss these regulations and more including the private letter ruling that governs the IRS requirements.

But recouping overpayments is much more complex than just adhering to IRS code! Wage and hour law compliance must also be honored when dealing with overpayments. Before the payroll department even needs to determine IRS requirements they must first determine if recouping the over payment is even legal under the FLSA. Issues such as exempt employee status, minimum wage and overtime rules for nonexempt employees must be considered when recovering overpayments from employees. We will examine the FLSA requirements on recouping overpayments including the 1998 opinion letter that spells out these requirements.

And of course, the overpayment did not occur in a vacuum when it comes to state laws. Each individual state may have their own compliance issues involving wage and hour laws! Is there a time limit for recouping the overpayment in that state? Does the employee have to be notified in advance before the deductions can begin? Or does the state just say NO! to the whole process? We will discuss how to conduct research to determine the state's requirements for handling overpayments. We will review the wage and hour laws of several states and the factors that they use to determine if an overpayment can be recouped.

So the question you have to ask yourself is: Are you and your department prepared to handle overpayments compliantly and effectively?

Why Should you Attend:
Attend this 90 minute presentation to gain knowledge of how to handle overpayments in the payroll department under IRS and wage and hour laws.

Objectives of the Presentation:
By the end of this webinar the attendee will have learned:
  • Why a 1990 IRS Private Letter Ruling on handling overpayments applies today
  • How to correct overpayments made in the same calendar tax year
  • Why asking for the gross is better than the net check for prior year overpayments
  • How to correct FICA taxes for a prior year overpayment
  • How to correct FUTA/SUI taxes
  • To use Form W-2 or Form W-2c to report overpayments
  • The standards under the FLSA in terms of timeframe for recouping prior year overpayments
  • If a written agreement for repayment is always required under the FLSA
  • Whether collecting overpayments from exempt employees affects salary basis compliance
  • The effects of recouping overpayments on minimum wage and overtime requirements
  • Whether or not employers can treat advanced vacation payments as overpayments if an employee terminates
  • Where the states stand on recouping overpayments
Who can Benefit:
  • Payroll professionals
  • Human Resources
  • Accounting Personnel
  • Business Owners
  • Lawmakers
  • Attorneys
  • Any individual or entity that must deal with handling overpayments in the payroll department.
Live Session - How it works
  • Username and Password will be sent to you 24 hours prior to the webinar
  • Presentation handouts in pdf formate will be mailed to you
  • Login to the session using the username and password provided to you
  • Get answer to your queries through interactive Q&A sessions via chat
  • Please let us know your thoughts and views at the end of webinar, your valuable feedback will help us improve
  • Get certification of attendance.
Recorded Session - How it works
  • A link will be provided to you upon purchase of the recorded session
  • Please click on the link to access the session
  • Presentation handouts in pdf formate will be mailed to you
  • Get certification of attendance.
$300
Recorded Session for one participant
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How it works
Live Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • The webinar joining link, username and password for joining the webinar will be updated on your OCP Account 24 hours prior to the webinar
  • Presentation handouts in Downloadable PDF format will be updated on your OCP Account 24 hours prior to the live session
  • Login to the audio conference on the scheduled date and time
  • Get answers to your queries through interactive Q&A sessions via chat at the end of the session
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account 24 hours after the completion of the session
  • Please let us know your thoughts and views at the end of the webinar, your valuable feedback will help us improve
Recorded Session - How it works
  • Login to onlinecompliancepanel with your registered username and password https://www.onlinecompliancepanel.com/login
  • Upon purchase of the recorded session a link will be updated on your OCP Account within 24 hours
  • Please click on the link to access the Recorded Session
  • Presentation handouts in downloadable PDF format will be updated on your OCP Account within 24 hours of the purchase of the product
  • Download the Certificate of Attendance and Purchase Invoice from your OCP Account after 48 hours of the product Purchase
  • Please share your valuable Feedback at the end of the session
Instructor Profile:
Vicki M. Lambert, CPP is President and Academic Director of The Payroll Advisor™ a firm specializing in the training of payroll professionals. With over three decades of hands-on experience in all facets of payroll functions as well as over 20 years as a trainer and author, Ms. Lambert is a 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 as well as serving as an in-house trainer for businesses such as Sun Microsystems, Fox Studios, Disney, County of Riverside and the City of Hesperia. Ms. Lambert currently 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.
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