Payroll Collections

Effective Date:

February 24, 2016

Function:

Payroll

Contact:

Kathy Shattuck

Basis for Procedure

The RF encourages all operating locations to maximize collections efforts and opportunities by addressing an overdue account, once identified, as soon as practicable. Operating location assistance will increase the success of the collections process.

Procedure Summary

This procedure provides an overview of RF’s formal collection process for payroll matters and explains how operating locations should request assistance with such matters.

Procedure Steps

Collection Process

Each RF operating location will be responsible for making all necessary and reasonable efforts to collect payroll overpayments owed. Once initial verbal requests for payment are deemed by an RF operating location to be unsuccessful or if the debtor defaults on a previously arranged payment plan the RF operating location should follow the process outlined below.

Step

Role or Responsibility

References or Tips

The RF operating location should send a written letter. It is recommended that this be sent overnight delivery or certified mail, return receipt requested, to the debtor, requesting payment with a brief explanation as to why payment is due to the RF. At this time, if it has not already been done, the overpayment should be removed from the sponsored award and charged to a campus Payroll Overpayment Account.

Operating location HR/PR staff

Please see ATTACHMENT 1 for a sample letter.

NOTE: RF operating location should take into account the proximity of the end of the calendar year when sending the request for repayment. If the overpayment is returned in the new calendar year the amount due has to be adjusted for income taxes that were withheld.

After 30 days, if this attempt is unsuccessful, the RF operating location should contact the corporate payroll office and provide copies of all written communication and documentation related to the overpayment. The payroll manager will then send a written "demand" letter, sent certified mail, return receipt requested, to the debtor.

Operating Location/Corporate Payroll Manager

(See Responsibility of Losses Policy and Write-offs procedure)

After another 30 days, if these attempts are unsuccessful, the RF operating location should be written off or moved to another RF Funded award.

Operating Location/Corporate Payroll Manager

Instructions on how to move expenditures

Definitions

None

Related Information

Collection Payroll Overpayments

Forms

Sample Overpayment Letter

Change History

Date

Summary of Change

February 24, 2016

Wording updated from prepayment to overpayment, remove referring over 30 days to OGSC for formal action.

June 7, 2011

Wording updated from overpayment to prepayment.

June 4, 2007

Wording updated from prepayment to overpayment, remove referring over 30 days to OGSC.

 

 

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