When a worker has been overpaid, process a negative adjustment timesheet to reclaim the money. Once calculated, the payslip would show a deduction.
If the worker has not returned funds, the remittance would stay this way until the money is returned. The worker then shows on the Overpayment Recovery Report until the funds are returned or reclaimed from the next payment. Overpayment Recovery is simply a Reducing Balance Loan.
If a worker has returned money, then create a New Payment that is non-taxable and non-NIable or use an existing Returned funds payment. Go to Payroll Entry (use any of the available - by Worker or by Reference) and fill in the details of the returned payment.
After the calculation, the Overpayment Recovery should disappear.