Over payment

How do you handle when an employee has been over-paid and you need to reduce their future pays by this over-payment? During the next several pay periods we need to reduce the employees pay but we need to make sure that they still receive at least minimum wage. Any suggestions.

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courtney-liscano

We send the employee a repayment agreement and set up the monthly payment on PR14.

csmith

Would you share your deduction set up?

courtney-liscano

Sure - just send me your email address!

darcey-timek

Colleen,

If you use PR14 only you would just be taking back the net pay. Likely you will need to take the overpayment back with PR36 or PR30 if it's over multiple payrolls to correct the year to date. If you have any questions, please let me know.

karin-jensen

We use time records (PR36) like Darcey. This automatically adjusts for any 401k over-contributions and adjusts taxes as well.

csmith

If we do on a PR30 or PR36 the system will take everything that is available and not leave at least minimum wage. This is how we had been processing but it is leaving the employee with nothing.

courtney-liscano

We have two types of codes - one is taxable and the other is non-taxable. We put the balance amount in PR14 based on if we are collecting gross (prior year) or net (current year) and we use the corresponding deduction code. Our unions do not allow for us to automatically adjust anything more than $150, so we fix the pay on PR36 and set up the OP on PR14 for the monthly amount they agree to.

unknown

Not sure if this will work, but here's an idea... If you can figure out what percentage of the employee's hourly rate is equal to minimum wage, you could set up a paycode (PR20.4) with a calculation type of P and then fill in the percentage in the rate field. For example, if the minimum wage is $10 and the employee's hourly rate is $20, then minimum wage would be 50% of the employee's rate, so you would use Calc Type P put 50 in the Rate field. Then on PR36, you would enter their "normal" pay for say, 40 hours, along with the new paycode for -40 hours, which will pay -40 hours at 50%, so it should be like taking away 20 hours. It would still be kind of manual because you would have to know the number of hours, but at least you would not have to figure out how much pay to take away each week.

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