Wage overpayment - help!

[ilove]

I reduced my hours from 40 to 32 on 1st March. March I got my 40 hour wage...fine, thinks I, that was for February.

April I got paid but was in hospital and took not much notice. So today is payday and I checked the bank and realised I had again received a 40 hour wage. My wage goes into the "bills" account and traight out again, so I don't see it in my "running" acvcount if you get my drift, hence not noticing before now.

So I contacted the wages man, to be told that he had no record of me reducing my hours and who had agreed it?

Rang my boss who confirmed the wage man had agreed it, and it was his error. Phone call an hour later from the wage man to discvover that yes it is his error, very sorry etc but you owe us £1k gross, £700+ net, and how would you like to pay it back.

They are happy to take it in installments out of the next few months, but what is reasonable to offer? Basically I can't afford to lose any of it, because dropping the 8 hours a week already loses me around £280 a month, and that brought it to a level I could just about manage on. But equally, it has to be repaid.

So do I owe them gross or net, and ateotd it is their error which I have pointed out...should get me brownie points, surely?

Help!

Oh, and apparently we get paid for the current month, which is why I owe 3 months...March, April and May. I'm hoping karma rewards me for owning up...

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Can't anyone help?

Offer to repay over 6 months, otherwise its a double dip for you over the next 3 months (since overpaid 3 months) and not really your fault.

Net/gross makes no difference. approx 160 Gross before tax, approx 100 net after tax.

but you can't really say you can't afford it because you weren't expecting the money at all and you've had it (except possibly for first month).
Do you really never check your bills account?

I got overpaid whilst on maternity leave and had to pay it back - I agreed to pay to back over a few months.

You owe them net. They can reclaim the overpaid income tax and NI from the government (provided they know how to operate the payroll properly). I'm a little surprised they've told you what the gross figure is. That's not really relevant. If they try to claim it back gross you should definitely complain. The difference went to the tax man, not you.

As Loshad says, you have had money you weren't entitled to. It is exactly the same as the bank paying £1,000 into your account in error. If you then spend it, saying you can't afford to pay it back won't get you anywhere.

It is entirely up to the company whether they allow you to keep any of the money on the basis that it was their error and you pointed it out. They are under no obligation.

I agree with Wildfish that you should offer to pay back over 6 months. Going much beyond that might be regarded by your employer as unreasonable.

Hope you manage to get this sorted without too much pain.

Thanks all. My husband runs the bills account, I usually only check it on payday to make sure I have been paid. He didn't realise it was wrong, and like I say I was ill last month and all I did was ask him if my wage had gone in. As soon as I have noticed, I've pointed out their error.

I can't afford to pay it back all in one go because DH has used my wage to pay off the credit card (we cut them up a few months ago) so it isn't in there to repay.

Good news that it is net to repay, I'll email them and ask them to take it over 6 months which I think they will be ok with.

They would put it through your payslip as a deduction of the gross amount. This will in turn result in a lower tax and NI deduction because of the reduction in your total gross pay which will have the end result that the total taken off your net pay will be the net amount.

Just thought I would mention that so you understand how the figures on your payslip work.

Does that make sense? Feeling a little groggy this morning so not sure if I am able to string together a coherent sentence!