RDA

Handling Overpayments to Employees

April Showers Bring May Flowers
Image credit: brookefuller / 123RF Stock Photo

How often do you pay someone who shouldn’t have been paid at all (or not as much) and you don’t catch it until after the payroll has been processed? ย It happens, Forrest! Of course, if you paid via check and the employee hasn’t cashed it, you can ask for that check back so that you can void it and process a new one. Or, if still employed, could always do an adjustment for the next payroll (as long as the overpayment isn’t more than the next payroll’s gross, of course). But, do you know how to use the void with repayment feature in OpenRDA, including how to record the repayment (net pay) received from the employee? ย It’s really very easy and straight-forward–as long as you remember that voids are always for full net (i.e., you can’t do a partial void). This process ensures that the employee’s W2 are correct as well as the accounting (for Financial Management) and bank records (Bank Reconciliation).

Should you have any questions, please contact a member of the Payroll Team.

Phyllis

phyllis.flowers@gmail.com

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