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Validity : 04th Jun'23 to 14th Jun'23
Recovering wage overpayments can be a time-consuming and sometimes challenging process for professionals. State laws governing recovery of employer overpayment and adjustment of related taxes often vary from the federal rules and from state to state. Recovery may be difficult or cause hardship for employees, particularly in termination cases. Understanding your compliance obligations and responsibilities to your employees is critical.
When errors do occur, it is important that employers follow appropriate procedures for making corrections and recovering overpaid amounts.
In this webinar recovery of an overpayment in the year the overpayment occurred will be distinguished from recovery in a subsequent calendar year. This includes recovery and repayment of overpaid taxes and corrections or amendments to payroll and wage reports such as Forms 941 and W-2.
Wage overpayments can result in significant costs in terms of staff time for analysis and correction. Compliance issues and errors made during the correction process can add to these costs.
Employers must abide by federal and state wage and hour laws. Usually, they cannot simply deduct money from an employee’s paycheck. In some cases, this could violate minimum wage or overtime rules or the requirement to pay full salary to exempt employees. Under some state laws, employers may not recover wage overpayments through payroll deduction without the employee's consent.
Where an employee is not receptive to repayment, particularly in termination cases, the employer may have to resort to legal action or forego recovery.
Recovery of an overpayment usually involves wage, tax, and fringe benefit recordkeeping and reporting concerns. The use of improper or illegal recovery methods may lead to the imposition of fines, penalties, or other sanctions on an employer.
After this webinar, you will: