Overpayments: Deal with an accidental overpayment made to an employee
When to use this overpayments flowchart
Use this overpayments flowchart to deal with an accidental overpayment made to a current employee.
The employer must act quickly once it discovers the error and attempt to obtain the employee's consent either to a deduction or deductions being made from the employee's salary, or to a repayment or series of repayments.
This flowchart should be used only where there has been an overpayment of wages or employment-related expenses.
Key steps
- Consider options for recovery and discuss matter with employee
- Make deductions in a reasonable way
- Review payroll procedures to ensure error is not repeated
