Payroll Standard Operating Procedure 18.0: Refunds of Employee Non-Tax Payroll Deductions

Subject: Refunds of Employee Non-Tax Payroll Deductions

Source: Financial Management Services

Original Date of Issue: August 2017

Date of Last Revision:

Rationale: To establish guidelines for refunding employee non-tax payroll deductions.

Procedure

University Payroll will refund voluntary payroll deductions to employees when it is determined that such deductions were made in error. Refunds will be made at the request of the IU organization or external entity who initiated the deduction. Employees should contact the IU organization or external entity to request a refund.

In most cases, the refund will be added to the net pay of the next payroll check to be issued to the employee. The refund will be made by means of an online check if University Payroll determines a delay will create undue hardship for the employee.

Refunds of required taxes and social security deductions cannot be made except as provided for in federal and state regulations and pursuant to University Tax Services policies and procedures.


Cross Reference:

Responsible Organization: Financial Management Services