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 paycheck 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 three options. These are:

  1    Pay the full amount by bank transfer.

  2    Pay the full amount automatically from your next paycheck.

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

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

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

An employee should pay the full overpayment amount before making DailyPay transfers again.

  1    If you pay the full amount back via bank transfer, you can make transfers again once the payment has cleared.

  2    If you automatically pay the overpayment from your next paycheck, you can make DailyPay transfers after your next payday.

  3    If you pay the overpayment from multiple paychecks, you can make DailyPay transfers again once the full amount is paid back.