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USPS Process Guide –
Chapter 9: Deductions –
H0ZUC – Recoup Overpayment of Compensation Reduction of Net (49)

Screen: H0ZUC
Prerequisites:

Adherence to FM00-26, November 8, 1999 payroll deduction to recoup overpayment of compensation.

Deduction number 49 must be set up for your agency on H0VCD.

This deduction is only for an overpayment of compensation made on a prior payroll. It is a reduction in the net amount due the employee.

This deduction takes all necessary available net, and recycles any remaining amount of the deduction (not the goal amount) to the pending file.

To use this deduction on lump sums, or other special pays, enter the deduction on H0ZUC, enter the deduction indicator with a value of 7 on lump sum bonus or special pay screen, and enter HUDU1 with deduction 49 with the amount and the same dates as the special pay.
Key Fields: AGENCY, EMPLOYEE SSN, NO
Step Action
1 Access H0ZUC.
2

Enter I in the SUBCOMMAND field of a blank row and enter deduction number 49 to insert a new record.

– OR –

Enter R in the SUBCOMMAND field of the appropriate record to change a record or discontinue a deduction.
3 Enter the following fields as required:
AGENCY (Key)
EMPLOYEE SSN (Key)
NO (Key)
FR (Required)
00 Do not take this deduction
01 Deduct on the first pay period of the month
09 Deduct on every pay period
AMOUNT (Required)
Enter the amount to be taken from each employee payment. The agency cannot enter an amount greater than the goal amount.
GOAL (Required)

Enter the total amount of the overpayment. This amount is the net amount due from the employee. The agency must calculate this amount. When payroll runs, the goal amount is reduced by the amount of the deduction taken.

The PERCENT DEDUCTION field must be zero, the END DATE field must be zero, the NUMBER OF DAYS field must be zero.
4

Press Enter to process the transaction.

Note: Overpayments recouped in this manner are posted to Fund 9015, PCA 99915, and the object code will be 3790, for the same appropriation year as the pay period for the pay from which the deduction was taken. The agency must do a return money transaction on HTMU1 (after the payroll that has the deduction processes) to correct the employee’s pay and tax accumulators, and to return the money to the employee’s PCA/Fund and adjust any vendor payments.

Monies recouped from the September payroll for overpayments in or prior to August are posted into the September appropriation year. HTMU1 transactions with August pay periods require funds to be transferred to the prior appropriation year (AY).

Payment plans arranged between the agency and the employee that are in multiple fiscal years may require the funds to be transferred to the fiscal year that corresponds to the pay period dates entered on the HTMU1 screen.

All returned monies, whether through employee payments or through this deduction, should be completely processed prior to the calendar year-end split in December. This ensures that the employee’s taxable wages are reduced by the amounts of returned overpayments and the employee’s W-2 is correct.

If H0ZUC has a DEDUCTION 49 with GOAL amount of zero and an HUDU1 deduction override with an ADJ VALUE of “ ” (blank) or “+” then the deduction can be processed but does not affect the GOAL amount.