An overpayment can happen if there is an ineligibility notice, which disqualifies a claimant in certain cases where they have already received benefits. The salary overpayment resulted because .This directive establishes the proper methods of handling wage overpayments. Overpayments must be handled consistently and in a timely manner across campus. Summary: The "new" Payroll Overpayment report will allow agencies to easily identify potential "Regular. Salary" overpayments. Administration mails the notification of overpayment letter to the affected employee. Report an overpayment. Complete an overpayment refund form to notify First Coast of an overpayment prior to receiving a demand letter. 1. Read the letter thoroughly to understand the context.