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Salary Overpayments “Write-off” Threshold. Financial UL Meeting June 2007. Background Information. All salary overpayments for current faculty and staff are pursued, regardless of dollar amount Gross Pay Deductions Recall of direct deposit or stop payment of check
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Salary Overpayments“Write-off” Threshold Financial UL Meeting June 2007
Background Information • All salary overpayments for current faculty and staff are pursued, regardless of dollar amount • Gross Pay Deductions • Recall of direct deposit or stop payment of check • Repayment by personal check from staff member • Salary overpayments for terminated faculty and staff are processed as a General Receivable invoice • Except when the net amount owed is less than $50.00 (“write-off” threshold) Page 2
Recommendation for New “Write-off” Threshold • Effective 7/1/07, implement the following changes • Change threshold test to gross pay amount rather than net pay amount • Eliminates the need to do complex gross-to-net calculations • Change the threshold amount to $300.00 gross pay • Reduce number of General Receivable (AR) invoices and associated workload by 30% • Only reduce the dollar amount of overpayments pursued by 4% • $300.00 is also the dollar amount under which we do not report adjustment amounts to the National Science Foundation (NSF) after we create & submit the final financial report to the federal sponsor Page 3
