What is overpayment?

If an employee has an overpayment in DailyPay, this means that the amount of their recent DailyPay transfers turned out to be more than the paycheque that was received for that employee. Overpayments occur when DailyPay does not receive the Net Earnings file in time, at all, or for the correct amount. 

Overpayments are rare, but if it occurs, DailyPay offers several solutions for an employee to resolve it.

How does an employee pay an overpayment back? 

When an employee has an overpayment and next logs into the DailyPay app, they will see an overpayment dollar amount and will be prompted to choose one of two options. These are:

  1    Pay the full amount automatically from your next paycheque.

  2    Pay the overpayment from multiple paycheques, which means the employee's paycheques will be less the repayment amount in each paycheque until the full amount is paid off.

Once the overpayment is repaid and the employee has earnings available again, the employee will be able to make DailyPay transfers again. 

What if an employee wants to make a transfer but they have an overpayment?

If the employee’s available earnings do not exceed the overpayment amount, then the employee will need to pay the full overpayment amount before making DailyPay transfers again.  

If the employee’s available earnings do exceed the overpayment amount and they have already elected to pay the overpayment from the next paycheque (#1 above), then they can make a transfer and that transfer amount (plus fees, if any) and their overpayment will be paid from their next paycheque.

If the employee’s available earnings do exceed the overpayment amount and they have already elected to pay the overpayment from multiple paycheques (#2 above), then they can make a transfer but they will receive a notification that their overpayment will instead be paid from their next paycheque.