Salary Overpayment - Any Payroll Managers Here?

[Robster]

Ive been overpaid by my employer. I have notified them and even had to show how much and when because they could not work it out !!.

I have now been asked to pay back more than twice my calculated amount because my employer has calculated the overpayment as a gross amount(before tax) instead of what I have actually received - nett.

This means I will pay the tax twice in effect, my argument is that I will pay back what I have actually received and my employer can claim back any tax and NI contributions instead of me having to complete endless forms.

Can anyone advise what is the correct proocedure??.

Thanks in advance

[MisterBubbles]

Check out this page

http://www.paypershop.com/faq/overpaid.html

[Robster]

Thanks for the link but it does not clear up the issue of paying the tax twice?.

[MisterBubbles]

Maybe a call to citizens advice is needed tomorrow then Geo?

[Robster]

Prefer not too tbh, had a few experiences with them and they are not that good Im afraid.

Wont rule it out just yet...

[Neon Ignition]

You should only be paying what you received, the Payroll dept has to claim back the tax themselves, it's just them being lazy feckers

[Plough Boy]

I appreciate this might not be practical but might be easiest. It will depend on how much they've overpaid you.

So, can you not just accept the overpayment and then ensure payroll correct by underpayment and necessary adjustment the following month?

[D J Kix]

...can you not just accept the overpayment and then ensure payroll correct by underpayment and necessary adjustment the following month?

This is what was arranged for me when I was overpaid last year. Tax was calculated after the deduction/adjustment, and therefore didn't have to pay tax twice (which is what I was also worried about!).

[smouty]

Depending on how much you were overpaid it may well be worth pointing out that the time and effort involved in reversing the error far outweighs what would be recovered. Some companies do not think like this unfortunately and will try to recover an inordinately small sum even if it involves many hours of effort.

[jimmbob]

The easiest way is for you to be paid less next time. Unless the overpayment is massive.

I do payroll, and it's far easier to stop what you have been over paid in a post/pre-tax deduction.

[Robster]

I have been overpaid approx £200 nett a month for 6.5 months during the previous tax year ending Mar 10.

According to my employer this equates to 392.5 gross per month so = £2525 approx.

Advised this morn it has to be completed in 12 months = £220 per month.

I cant afford £ 220 pcm, I can afford £110 pcm approx.

Due to this I have now been advised that I can request it to be recalculated in nett amount but its not gauranteed!.

I have also been advised (3rd party) the tax/ni can only be adjusted if it the current tax year, so as this relates to the previous tax year I repay the nett and my employer applies for a rebate for tax/ni.

It just seems so long and drawn out when all is needed is to do the sensible thing and pay back the nett op.

Its quite stressfull !