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HR & PAYROLL

Home HR & Payroll Payroll Overpayments: Handling them Correctly in 2022


PAYROLL OVERPAYMENTS: HANDLING THEM CORRECTLY IN 2022

Live Webinar

 * SPEAKER
   
   Vicki M. Lambert CPP

 * DATE
   
   Jun 28, 2022

 * TIME
   
   13:00 PM EST

 * DURATION
   
   90 Min

$199.00
Book Now
 * Overview
 * Speaker
 * CEUs

Overview:

 

We will discuss these regulations and more including the private letter ruling
that governs the IRS requirements. We will examine the FLSA requirements on
recouping overpayments including the 1998 opinion letter that spells out these
requirements. We will also discuss how to conduct research to determine the
state’s requirements for handling overpayments. We will review the wage and hour
laws of several states and the factors that they use to determine if an
overpayment can be recouped.

 

Background:

 

Employees can be overpaid in even the most well managed payroll department. Yes,
it does happen when mistakes are made but it isn’t always the result of an
error. Perhaps the employee received a sign on bonus but did not stay for the
required length of time. Or the employee was advanced vacation but is now
terminating before he or she has fully earned the time. No matter the reason,
overpayments can and do happen and must be handled properly. The first questions
that usually arise relate to IRS regulations. What is required if the
overpayment occurred this year?  But what if it occurred in a previous tax year,
does that change the rules? Are the rules different for federal income tax than
they are for social security or Medicare taxes?

 

Recouping overpayments is also much more complex than just adhering to IRS code!
Wage and hour law compliance must also be honored when dealing with
overpayments. Before the payroll department even needs to determine IRS
requirements they must first determine if recouping the over payment is even
legal under the FLSA. Issues such as exempt employee status, minimum wage and
overtime rules for nonexempt employees must be considered when recovering
overpayments from employees.

 

And of course, the overpayment did not occur in a vacuum when it comes to state
laws. Each individual state may have their own compliance issues involving wage
and hour laws! Is there a time limit for recouping the overpayment in that
state? Does the employee have to be notified in advance before the deductions
can begin? Or does the state just say NO! to the whole process?

 

Session Highlight:


Ø  Handling Overpayments under IRS and State Tax Codes:

 

·       Why a 1990 IRS Private Letter Ruling on handling overpayments applies
today

·       Correcting overpayments in the same calendar tax year

·       Why asking for the gross is better than the net check for prior year
overpayments

·       Correcting FICA taxes for a prior year overpayment

·       Correcting FUTA/SUI taxes

·       Using Form W-2 or Form W-2c to report overpayments




Ø  Wage and Hour Laws and Their Impact on Recouping Overpayments:




·       The standards under the FLSA in terms of timeframe for recouping prior
year overpayments

·       Is a written agreement for repayment always required under the FLSA

·       Collecting overpayments from exempt employees and its effect on salary
basis compliance

·       Recouping overpayments and its effect on minimum wage and overtime
requirements

·       Can employers treat advanced vacation payments as overpayments if an
employee terminates

·       Where do the states stand on recouping overpayments

 

 Who Should Attend:


·       All Employers

·       Business Owners

·       Executive Officers

·       Company Leadership

·       Compliance Professionals

·       Payroll Professionals

·       HR Professionals

·       Accounting Professionals

·       Operations & Departmental Managers

·       Managers/Administrators/Supervisors/Practitioners

·       Lawmakers

·       Attorneys/Legal Professionals

·       Any individual or entity that must deal with the complexities and
requirements of payroll compliance issues

 

Ask your question directly from our expert during the Q&A session following the
live event.







Vicki M. Lambert, CPP, is President and Academic Director of The Payroll
Advisor, a firm specializing in payroll education and training. The company’s
website www.thepayrolladvisor.com offers a payroll news service which keeps
payroll professionals up to date on the latest rules and regulations.

With nearly 40 years of hands-on experience in all facets of payroll functions
as well as over three decades as a trainer and author, Ms. Lambert has become
the most sought-after and respected voice in the practice and management of
payroll issues.  She has conducted open market training seminars on payroll
issues across the United States that have been attended by executives and
professionals from some of the most prestigious firms in business today.

A pioneer in electronic and online education, Ms. Lambert produces and presents
payroll related audio seminars, webinars and webcasts for clients, APA chapters
and business groups throughout the country. Ms. Lambert is an adjunct faculty
member at Brandman University in Southern California and is the instructor for
the American Payroll Association’s “PayTrain” online program offered by Brandman
University.

1.50 HRCI Credit Hours (Applied)


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