Overpayments Collection
If an employee has been overpaid by Loyola University Chicago, the overpayment is a legal debt and must be repaid in full. It is the policy of the Payroll Department to work with the department to initiate recovery efforts on all payroll overpayments as soon as the discrepancy is detected.
When a department or employee determines that an overpayment has occurred, the department or employee must notify the Human Resources Office (HR-Payroll-Processing@luc.edu) and Payroll (Payroll@luc.edu) via email as soon as the overpayment is discovered. Details must include the employee’s name & ID, date the issue was discovered, the period of overpayment, the amount and type of overpayment (i.e. Regular wages, supplemental pay, etc.) and the reason for overpayment.
Payroll and/or HR will determine the final amount owed based on their assessment of the overpayment. They will also determine the best repayment method, with the preference being a salary reduction/repayment agreement, if the employee will continue to receive future pay; or either an ACH or Wire transfer payment and/or check issuance, if they will not receive any future pay.
Overpayments Q&As
Do I have pay back the taxes that were deducted from my overpayment?
If your overpayment was made in the same calendar year, generally, only the net amount of the overpayment must be repaid to the university.
Will my W-2 be correct at the end of the year? I don’t have to pay taxes on money I didn’t really earn, do I?
Payroll corrections made prior to the end of the calendar year will ensure that your W-2 is correct. For overpayments that occurred in a previous calendar year, a corrected W-2 (W-2C) may be required. The Payroll Office will advise you of when a W-2C will need to be issued.
What if my overpayment happened in a previous calendar year?
An overpayment that occurred in a previous calendar year is considered taxable income in the year it was paid, and remains taxable for Federal and State purposes, and will be included in Boxes 1 and 16 of your W-2 for that year. You will be responsible for paying back the gross amount of the overpayment minus any Social Security and Medicare taxes that were deducted.
Who can I speak with if I have a question about the overpayment amount?
Generally, the gross amount of the overpayment is calculated in the Human Resources Office and you can contact your HR Manager for those questions. If you have a question concerning the net amount due, how it was calculated or how it will be repaid, please contact the Payroll Office.
How do I pay back the overpaid funds?
Overpayments are normally processed as salary reductions, however, if necessary, you may pay by personal check, wire or ACH. Please contact the Payroll Office for specific repayment options.
Who do I contact if I think there is an error in my paycheck?
Your first point of contact should always be your supervisor. If they are unable to provide guidance, you may contact Human Resources for questions concerning benefits, or the Payroll Office for questions concerning over-time, deductions other than benefits, or taxes.
If an employee has been overpaid by Loyola University Chicago, the overpayment is a legal debt and must be repaid in full. It is the policy of the Payroll Department to work with the department to initiate recovery efforts on all payroll overpayments as soon as the discrepancy is detected.
When a department or employee determines that an overpayment has occurred, the department or employee must notify the Human Resources Office (HR-Payroll-Processing@luc.edu) and Payroll (Payroll@luc.edu) via email as soon as the overpayment is discovered. Details must include the employee’s name & ID, date the issue was discovered, the period of overpayment, the amount and type of overpayment (i.e. Regular wages, supplemental pay, etc.) and the reason for overpayment.
Payroll and/or HR will determine the final amount owed based on their assessment of the overpayment. They will also determine the best repayment method, with the preference being a salary reduction/repayment agreement, if the employee will continue to receive future pay; or either an ACH or Wire transfer payment and/or check issuance, if they will not receive any future pay.