A sample form for an employee to agree to repayment of a wage overpayment error. This directive establishes the proper methods of handling wage overpayments.Overpayments must be handled consistently and in a timely manner across campus. This model letter as a legally approved form for a client to use when informing an employee about correcting a wage overpayment. Overpayments are considered paid when received and must be included in the employee's income when received. File Form SSA-632, Request for Waiver of Overpayment Recovery. The "new" Payroll Overpayment report will allow agencies to easily identify potential "Regular. Salary" overpayments.