Overpayment prevention and detection

Timely and accurate payroll processing

Overpayments are usually created by late processing of amendments or incorrect transactions on eduPay. The common types of amendments or transactions that cause overpayments are:

  • Worker’s Compensation leave entry
  • late processing of employment terminations
  • late processing, incorrect or duplicated allowances
  • late processing of time fraction changes
  • incorrect salary levels or classifications

All payroll transactions should be undertaken, wherever possible, prior to the day of pay finalisation to allow sufficient time to check the results of these transactions.

Checking payroll messages and reports

Action to be taken before pay finalisation

Certification messages are a key tool in detecting and preventing overpayments. These messages provide HR Administrators with the first indication of an overpayment or underpayment and are produced as a result of nightly payroll calculations. Certification messages display for overpayments where:

  • a retrospective transaction in eduPay creates an overpayment
  • the employee has been rehired and has an outstanding overpayment liability relating to an earlier period of employment that needs to be repaid

All certification messages need to be viewed on a daily basis and appropriate action needs to be taken prior to pay finalisation. For more information about certification messages, refer to Payroll Certification User GuideExternal Link and the Certification Messages and Required ActionsExternal Link sheet.

The Over–Underpayment Summary Report which displays information on outstanding over or underpayments can be run at any time to confirm the outcome of any action taken as a result of a certification message.

In order to maximise opportunities to take appropriate payroll action on overpayments that have occurred during the pay fortnight, the report should be run before pay finalisation. Refer to the Reports User GuideExternal Link for more information on accessing reports.

Action to be taken after pay finalisation

Validating the payroll signifies that all data has been reviewed and is:

  • correct
  • acknowledged to be incorrect with comments outlining the reasons for the error and the next steps to be taken

The payroll certifier has the ultimate responsibility for the pay results for employees in their school and is accountable for ensuring that all salary payments are true and correct for all employees or that appropriate action is underway to rectify any errors.

The Over–Underpayment Summary Report is run every fortnight when pay is finalised. This report is used to confirm action taken during the pay period and the overpayment liability for an employee. Information displayed on the report includes:

  • the total amount for each employee’s overpayment (including terminated employees)
  • the amount that has been repaid
  • the amount that remains outstanding

Data in the report should be used to identify overpayments requiring action.

Cancellation of direct credit

Where appropriate, and in accordance with Department policy, the principal may request a direct credit cancellation (recall). Information on cancelling an employee’s direct credit is available from Direct Crediting of Salary on the Schools Policy and Advisory Library.

A direct credit cancellation request must be received prior to 4:00pm on the Tuesday before pay day.

Note: There is no provision to produce payment to replace a cancelled payment.

Prevention and Detection for Overpayments

Reviewed 01 April 2020

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