Quarterly Overpayment Collection Fee Billing
Effective October 1, 2008 University Payroll (UP) began charging a 25% processing fee for overpayment collection. This fee is applicable on overpayments collected on or after October 1st, regardless of when the overpayment was incurred, however, the fee will only be charged on overpayments that were deemed by UP to have been avoidable.
Invoices are prepared at the start of each quarter for the previous quarter. The invoice will include:
- Overpayments that were paid in full during the billing cycle.
- 25% collection fee assessment on overpayments deemed avoidable.
- Total amount due for processing fee for the billing cycle
- Section for department to complete, and return to UP, with project number they want charged for the processing fee (cannot be a ledger 5 account).
If a department feels that a specific overpayment was unavoidable and therefore they should not be charged the 25% processing fee, they may appeal the charge. Appeals can be submitted in writing to the Tax Manager via email or campus mail (Campus Box 7233). It should include the employee’s name and employee ID, the amount of the overpayment and a detailed reason for the appeal. Deadline for appeal submission will be noted on the memo that accompanies each billing.
