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One of the simplest approaches to overpayment is taking the amount overpaid out of the employee's next paycheck. If you choose this approach, be sure to communicate clearly with the employees who were overpaid to let them know what happened and how it will be corrected.

Example: Employee A was paid $500 on their check for the 1/31 pay period. Employee A should have been paid $400. This results in a gross overpayment of $100.

I am writing to you because I have been informed that I have been overpaid. I (am/was employed/engaged) by you from (enter date) to the (enter date) as a (enter job title) on a (enter job type - full time, part time or agency/casual) basis. You have stated that I have been overpaid by a total sum of (enter amount).

The most common way is to create a journal entry to record the amount of the overpayment and the corresponding invoice number. Another method is to credit the supplier's account with the overpayment amount, and then debited the account for the corresponding invoice.

Overpayment letter to employee template for immediate use You are receiving this letter because an overpayment has been issued to you in the amount of $X. XX due to: (State Reason Here). Please sign, date, and return the form below within X days. I have been notified of an overpayment in the net amount of $X.

Please accept our sincerest apologies for any inconvenience this may have caused. We will be processing a refund of the overpaid amount of $[amount] to your original payment method within the next [timeframe]. If you have any questions or concerns, please feel free to reach out to us at [email] or [phone number].

Dear [Employee], A salary overpayment has been identified on a previous pay period and has been submitted to University Payroll & Benefits for processing. University Payroll & Benefits will send you notification of the overpayment along with the collection process needed to satisfy this debt.