If a Stanford employee has been overpaid, administrators can submit a Service Request to Payroll to try to recover the overpayment or reduce the employee’s future paychecks.
Before You Start
- You will need a SUNet ID and password.
- You will need employee information from Peoplesoft.
Report Overpayment to Payroll
- Payroll will attempt to recall the direct deposit if the overpayment is discovered within three business days of payday
- Payroll will confirm with you if the direct deposit is successfully recalled
- Request an off-cycle check if pay is owed to the employee
- Reduce employee’s next regular paycheck by the gross amount of the overpayment
If the overpayment is large, the reduction can take place over 1-3 pay periods. Submit a separate One-Time Payment Form for each pay period. Any exceptions to this timeframe must be approved by the department and the Payroll Director and are subject to a $20 per pay period administrative fee.
- Download and print the One-Time Payment Form
- Complete the Reduce Pay section
- Submit the form to Payroll by 5:00 p.m. on the last day of the current pay period
- Request a check repayment from the employee
- Payroll will calculate the net amount due
- Ask the employee to write a check payable to Stanford University
- Send the check to Payroll with a memo indicating the relevant Employee ID number and the PTA to be credited
- Payroll applies repaid funds to the PTA originally charged.
- Payroll will continue to follow up with departments on outstanding overpayments, until the repayment has been received. It is an exception to policy to forgive an overpayment.
- Overpayments cannot be maintained on grants or sponsored projects. If a pending overpayment is on a grant or sponsored project, enter a Labor Distribution Adjustment to move the overpayment to an unrestricted PTA. Refer to How To: Create Labor (Salary) Distribution Adjustment.