An overpayment can happen if there is an ineligibility notice, which disqualifies a claimant in certain cases where they have already received benefits. Answer all the required questions on the factfinding form.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. This chapter deals with state law provisions identifying, establishing, and collecting overpayments. All states have provisions addressing these matters. Overpayments are considered paid when received and must be included in the employee's income when received.