1 Colo. Code Regs. § 101-1-9-5

Current through Register Vol. 48, No. 1, January 10, 2025

Rule 1 CCR 101-1-9-5 - OVERPAYMENTS TO STATE EMPLOYEES

1.AUTHORITY

§24-30-201, C.R.S. (Powers and Duties of the State Controller)

§24-50-104(9)(a), C.R.S. (Liability for Overpayments to State Employees)

2.DEFINITIONS

2.1. Overpayment - An overpayment is any payment that results from overstating the rate of pay, overstating the hours worked, understating the employee deductions, or any other payments to which the employee is not entitled.

3.RULE

3.1. If a State employee is paid more than the amount due, provisions shall be made for the repayment of the Overpayment.

3.2. Agencies shall collect Overpayments using the following processes:

3.2.1. Active employees where the overpayment can be collected on the next paycheck - Agencies shall be deduct the Overpayment from the employee's next paycheck.

3.2.2. Active employees where the overpayment cannot be collected on the next paycheck and is collected using a repayment schedule - Agencies shall collect the Overpayment using a repayment schedule extending over a period of time. The Chief Executive Officer of the State Agency, or a delegate of that individual, shall establish a repayment schedule based on the particular facts involved in each case. Any repayment schedule extending for more than six months shall be subject to approval by the State Controller. To avoid issuance of form W-2c, agencies shall complete the repayment in the same calendar year as the overpayment.

3.2.3. Terminated employees who no longer work for the State and who send the State a check for the amount of the Overpayment - Agencies shall complete the Overpayment form and calculation and send to Central Payroll for processing. Agencies shall create an accounting transaction (ITI) in the State Financial System for Central Payroll to process the overpayment and approve the ITI. The terminated employee's pay will be adjusted in the State Payroll System to reflect repayment of the Overpayment. Agencies shall include a form W-2c with the Overpayment form if the payment crosses calendar years. Agencies may follow this process for employees who were out on leave without pay, short-term disability, injury, FML and related leave and who return to work.

3.2.4. Terminated employees who no longer work for the State and who do not send the State a check for the amount of the Overpayment - Agencies shall develop a process to record a receivable in the State Financial System, and shall not submit an Overpayment form to Central Payroll. The terminated employee's pay will not be adjusted in the State Payroll System. The unpaid amount will remain as a receivable in the State Financial System until an agency collects or sets up a debt allowance and obtains approval to forgive the debt (see Fiscal Rule 10-1).

3.3. To avoid adjustments in various tax forms, agencies shall process overpayments no later than three months after an employee is terminated

3.4. A State employee's maximum liability for repayment of a payroll-related Overpayment shall be limited to the total amount of the overpayment in the present calendar year plus the total amount of any Overpayment in the three prior calendar years. A State employee's maximum liability for repayment of a non-payroll-related Overpayment shall be limited to the total amount of the Overpayment in the present fiscal year plus the total amount of any Overpayment in the three prior fiscal years.

3.5. If an employee receives an overpayment that is not repaid and terminates employment with the State and then rejoins the State as an employee, the State may collect any overpayments from the employee's pay in accordance with §3.4.

3.6. Any amount that an employee of a State Agency has not repaid in accordance with this rule is subject to Fiscal Rule 10-1 (Collections of Debt Due to the State). Any amount that an employee of an Institution of Higher Education has not repaid in accordance with this Fiscal Rule is subject to the accounts receivable policies of that Institution of Higher Education.

3.7. To avoid overpayments, agencies shall have a policy to accurately and timely:

3.7.1. Record and review employees' time,

3.7.2. Record changes in employee status (active, terminated) in the State Payroll System, and

3.7.3. Set up adjustments to pay in the State Payroll System.

1 CCR 101-1-9-5

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024