linear_scale How To

Adjust for Employee Overpayment

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.

Adjust for Employee Overpayment

  • You will need a SUNet ID and password. 
  • You will need employee information from PeopleSoft.

  1. Submit a Service Request
  2. Enter the description 
  3. Include the following details about the overpayment:
    • Employee ID
    • Employee Name
    • Overpayment Amount
    • Pay Period(s) when Overpayment Occurred

If Overpayment Was Made by Check
  1. Attempt to retrieve the check from the employee
  2. Return the check to Payroll for cancellation
  3. Request an Off-Cycle Check if pay is owed to the employee
If Overpayment Was Made by Direct Deposit
  1. Payroll will attempt to recall the direct deposit if the overpayment is discovered within three business days of payday
  2. Payroll will confirm with you if the direct deposit is successfully recalled
  3. Request an off-cycle check if pay is owed to the employee
If Overpayment Cannot Be Recovered
  • 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. 

    1. Download and print the One-Time Payment Form
    2. Complete the Reduce Pay section 
    3. 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
    1. Payroll will calculate the net amount due
    2. Ask the employee to write a check payable to Stanford University
    3. Send the check to Payroll with a memo indicating the relevant Employee ID number and the PTA to be credited
What Happens Next?
  • 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.
Additional Information
  • 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.
Last Updated: Jun 21, 2023


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