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To not pay back all the overpaid salary?

56 replies

M3lon · 06/08/2019 15:16

I've been overpaid for 3 months due to system malfunction (apparently).

Now my employers wants the money back, but they want the gross salary error back rather than the bit they have mistakenly paid to me. Is it really on me to pay back everything they have miss paid, including the additional money paid to HMRC, pension fund, national insurance etc? Or do I just owe them back what they have mistakenly put in my bank account, and its on them to chase the rest of the money they have paid out incorrectly?

It feels pretty unfair to put me into debt while I chase around to get their money back from the people they sent it to in error?

OP posts:
coconuttelegraph · 06/08/2019 16:27

I hope this isn't going to turn into a cancel the cheque. Rtft people, it's been sorted, the op was never going to pay back anything more than she needed to

MrsEricBana · 06/08/2019 16:27

Not fair at all. I would pay back the overpayment I received but not the rest, that's their error. It's like saying if they overpaid a higher earner's bonus by £100k and gave the employee £60k and HMRC £40k in tax (say), the employee would only pay back the £60k if this later proved to be an error not the £40k that was overpaid to HMRC too. Horrible though.

A88ie1 · 06/08/2019 16:31

That’s strange, I would have thought that they would just take the extra back, sounds to me your payroll department is lazy as this is simple. We would just take the extra from the monthly salary so say for example 250. Then just multiply it by 3 to get 750 then we would decide by the EEs wages if they can take it all back in one go or on instalments. More then likely 2 monthly instalments of 375

They wont want the net amount as this amount changes after tax so they do it on gross. Otherwise the gov get the tax on yours and employers payment. This is normal. The pension and tax amounts will be refunded as soon as a corrected FPS has been sent sort of thing. If you only got what went into your account then who gets the tax, NI and pension you paid on the extra amounts?

Also, if the person they sent it to in error leaves the company, or doesn’t work there any more, then they probably never see it again. Your post is confusing as you got paid extra and then someone got it in error it doesn’t mean that someone got paid less or more, it doesn’t work like that. Also was it a pay rise they thought you had etc, usually on a basic things don’t just cock up.

stucknoue · 06/08/2019 16:52

If I as an employer overlay I would need to underpay the following month (or over 3-6 months) then only the correct tax and ni will be deducted. It's possible to amend a previous month on the hmrc system then you would get a refund the following month - hr can let you know but either way you should only have to pay the net back

Chloemol · 06/08/2019 17:13

Sorry if they have overpaid you it’s up to them to sort it out. They should adjust the pay via their payroll system that will sort out overpaid tax etc, and they should talk to the pension provider about the overpayment. This is thier error to sort out, you just need to repay the net salary

If this is all done via payroll then one month you will get much less, but have the actual funds sitting in your account

However why didn’t you raise this the minute you knew you were overpaid instead of leaving it three months

M3lon · 06/08/2019 18:01

coconut I think this has great cancel the cheque potential....except there is no pithy phrase to sum it up!

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