On October 5, we received the following alert from the UCPath Center (UCPC).
- UCPC provides this guidance on an annual basis for administrators who may need to assist employees with the Year-End Overpayment Recovery effort.
The Internal Revenue Service (IRS) states that repayment of a payroll overpayment must occur in the same year as the overpayment. This repayment ensures the employee's current-year earnings and taxes are correctly reflected on their W-2.
Please share the below information with those who submit overpayment adjustment requests and, as applicable, employees who have outstanding overpayments.
Important Deadlines:
- For overpayments that occurred between January 1 and November 15, 2023, submit adjustment requests no later than November 17, 2023.
- Requests received after November 30, 2023, may not be processed prior to year-end.
- Employees must repay the net amount of the overpayment (gross earnings less taxes and deductions) by December 29, 2023.
- If payment is not received by December 29, 2023, the employee's W-2 will include the 1) amount overpaid and 2) applicable federal and state withholding taxes.
TIP: Send adjustment requests through the UCPath "Overpayment Adjustment (E-078)" as soon as the overpayment is identified.
What happens if I do not submit adjustments before the end of the year?
Overpayments not corrected before December 29, 2023, will be processed as prior-year overpayments in 2024, and the employee will owe unrecoverable taxes.
Anything else I should know that might affect employees?
- Be sure to notify employees with outstanding overpayments so they can arrange for repayment before December 29, 2023
- Employees who have previously agreed to repayment terms are not subject to this deadline
- If repayment is not made in 2023, the employee must repay a higher amount since withheld taxes cannot be adjusted in subsequent years
Paychecks being held by locations or employees for pay that is not due must be immediately returned to the UCPath Center. UCPath will reverse the returned check to ensure the employee's 2023 W-2 is correct.
- Employees may return checks via U.S. Mail with a note indicating it is related to an overpayment.
Return checks via mail:
UCPath
14350-1 Meridian Pkwy
Riverside, CA 92518
- Location teams may return checks to UCPath on behalf of employees via U.S. Mail or case submission:
Return checks via case submission:
1) Open a case with the check attached
2) Request to have the check reversed
3) Include the phrase “Do not reissue” when submitting the case
Thank you,
UCPath
(855) 982-7284
Monday - Friday from 8:00 a.m. - 5:00 p.m.
ucpath.universityofcalifornia.edu
