UAMS ADMINISTRATIVE GUIDE
The purpose of this policy is to notify departments within the University of Arkansas for Medical Sciences (UAMS) of the possibility of errors in payroll, and to establish uniform guidelines to be followed in correcting those errors. UAMS recognizes that errors due to administrative oversight may occur, and that although these occurrences may be infrequent, they can create hardship for the affected employee.
(1) Employees or administrative personnel within the employee's department who discover payroll errors must report such errors to their departmental time keeper, who is responsible for notifying the payroll office.
(2) The payroll office will research the issue and substantiate the findings. If it is determined that an actual error has occurred, correction will be made, whether the error was an overpayment or an underpayment.
(3) A correcting payroll run, referred to as a “supplemental payroll” is routinely done on the third business day after a normal payroll. Included in this payroll are underpayment errors of 10% (8 hours) or more. In addition, the payroll office may make other corrections as time permits.
(4) Errors in net pay which result from deductions or taxes shall be treated as follows
a) Federal Income Tax and State Income Tax overwithholding or underwithholding may be corrected by filing a W-4 (or State W-4) in succeeding pay periods. No direct refund checks will be issued, since errors may be corrected when filing a tax return at the end of the year.
b) Social Security (FICA) overwithholding or underwithholding will be corrected on a subsequent payroll(s).
c) Where a deduction was taken in error, the amount will be refunded only when no service or benefit has been derived by the employee. Where a deduction should have been taken but was not, the amount will be collected from a succeeding paycheck only when the service or benefit has already been received by the employee.