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 on 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 the 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 overpayment 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 state may have its 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?    

This comprehensive course equips attendees with the knowledge and practical guidance to navigate IRS regulations, wage and hour laws, and state compliance.

Learning Objectives:-

• To discover federal wage and hour laws and their impact on recouping overpayments.
• To identify IRS requirements on recouping overpayments in a current tax year.
• To explore state wage and hour laws and their impact on recouping overpayments.
• To recognize the requirements of recouping overpayments under IRS regulations in a subsequent tax year.

Areas Covered:-

• FLSA Requirements
• State Wage-Hour Requirements
• IRS Basics
• Federal Income Tax
• FICA Taxes
• Putting it all together

Don't miss this opportunity to enhance your understanding and expertise in handling employee overpayments. Register now to secure your spot in this informative and practical Webinar.