Re: Payroll Overpayment. This model letter as a legally approved form for a client to use when informing an employee about correcting a wage overpayment.(a) Gross wage or salary other than compensation in the form of: (1) Services; or. (2) Food, housing or clothing. The salary overpayment resulted because . The amount of the overpayment must be assessed to the liable person, and the person must be notified of the basis of the assessment. Generally speaking, no, an employer cannot do this. If the Social Security Administration sent you a notice about an overpayment you owe, you can make a secure payment here.