How to handle overpayments through 7shifts Payroll

Question

What steps can I take if an employee has been overpaid through 7shifts Payroll?

Answer

The correct method to resolve an overpayment depends on the payment method used and the amount of time that has passed since the payday.

What to do

Standard Bank Transfers (ACH)

Within 5 business days of payday

It may be possible to reverse the payment if the request is made within five business days. 7shifts Admins should contact the Support team to initiate this request. Please note that reversals are not guaranteed and 7shifts Payroll partners charge a $75 processing fee for each request.

More than 5 business days after payday

You must arrange repayment directly with the employee because the window for a bank reversal has closed. You can recover the overpaid amount by applying a deduction to the next payroll run for that employee profile. Admins should contact the Support team for assistance with correcting any tax implications resulting from the overpayment.

Here is an article with more information on how to apply deductions: 7shifts Payroll: Post-Tax Deductions

Instant Payments

Instant payments cannot be reversed. You must arrange repayment directly with the employee. You can recover the overpayment by applying a deduction to the next payroll run for that employee profile.

Tax refunds requested by employees

If an employee requests a tax refund due to an overpayment, 7shifts Payroll administrators must contact the Support team for assistance.

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