When PSF's are received in the Payroll Department, the effective date of the action is reviewed by payroll staff. If the action date has passed, a further review of payroll processing is initiated to determine if an overpayment appears to exist. The Payroll Department then calculates the salary overpayment and validates the existence with the department. Once acknowledged, a journal entry noting the employee name will be processed to establish the salary overpayment receivable. The debit entry will posted GT/FUND10010/129120/ and credit entry will be posted to the department project and account originally charged. If the overpayment was made to a student employee, the Bursar's Office will be notified and a “financial hold” will be placed on the student's account. The hold will prohibit the student from registering for future terms, receiving transcripts and receiving a diploma.

Payroll will send a certified letter to the employee requesting immediate repayment (all communications to the employee will be copied to the department). When received, the repayment will debit the cash account GT/FUND/10010/118000 and credit the salary overpayment receivable account GT/FUND10010/129120. If the overpayment was made to an active employee, the next pay check will be decreased by the amount of the overpayment. If the overpayment was made to a terminated employee, a check will be immediately forwarded to the Payroll Department.

If the repayment from the next available pay check would create a financial hardship, and there is no indication of fraud, Payroll may establish a repayment plan not to exceed 60 days.

To maintain compliance with the Federal and State Department of Labor laws, Payroll will not pay an employee less than the current minimum wage, even if it extends the repayment period past the stated 60 days.

If the overpayment was made to a terminated employee who has an Annual Leave Balance, the overpayment amount will be deducted from the employee's annual leave payout. The remaining leave balance will be paid to the terminated employee with the next available payroll process for their pay group.

If the employee does not respond to the first communication, a second certified letter will be mailed in 30 days. If there is no response to the second letter, a third certified letter will be mailed at the 60 day mark. If at the end of 90 days, there is still no response, the employee name and salary overpayment amount will be sent to the Bursar's Office to be placed with a collection agency. The Bursar will debit the Salary Overpayment Bursar AR account GT/FUND10010/128001 and credit the Payroll salary overpayment account GT/FUND10010/129120. If the overpayment is for an employee in the Georgia Tech Research Institute (GTRI) or Auxiliary Services, the debit entry to the receivable (account 128001) will be posted in the corresponding fund code for that unit (i.e. FUND11021, FUND12210, FUND12250, etc.). At the time the account is placed with collections, the financial reporting Division for the unit with the overpayment (College or Major Administrative Division) will receive a decrease to their general operations budget for the same amount. If collection efforts are successful, the Division may seek additional budget authorization through the standard budget process for the net amount collected by GT if material. In lieu of a decrease to their general operations budget, GTRI and Auxiliary Services will be charged a bad debt expense once the uncollectible receivable is written off by the Bursar's Office.

Contacts
All questions concerning the Salary Overpayment Reimbursement policy should be directed to the Office of Human Resources Director of Payroll.