Salary overpayments for full and part-time employees that don't involve adjustments to service credit can be recovered during the school year:
Refer to Contribution Rate Changes and Using Status Code A or M for additional restrictions that may apply.
These are examples for how to report an overpayment adjustment.
Q1: A new teacher was erroneously placed on the wrong step in the salary schedule causing an overpayment. The error was discovered in January, and the teacher is contracted to work through June 20th. The employer wants to recover the overpayments in installments from the employee. How would this be reported to DRS?
A1: Because this is only an adjustment to pay, the employer could back out the payments equally over the remaining working months of the school year, using Status Code A.
Q2: Using the scenario above, how would the employer report the recovery of the over payment in a lump sum?
A2: Back out the lump sum with Status Code M in the month that the negative adjustment is recovered from the employee. Again, make sure you are backing out the overpayment in an earning period where there are sufficient dollars available.