Overpayment of Wages/Adjusting Tax

blondie82

Not sure if this is the right forum for this feel free to move me if not.

I was working f/t until I left to go travelling in July 2011. Was meant to work until end of July. Ended up finishing exactly 1 week early. This was a last min thing so the wages had already gone through to the bank & I got paid for the full month. I was on a salary of €35000 and was paid monthly. My net monthly was €2327.99
It has taken my ex employer till now to come back to me & let me know the amount I owe back, I have been trying to pay but could not work out the figure as I assumed I would have overpaid PAYE (and possibly PRSI & USC but prob not) and the figure would have to be adjusted to allow for this?
They have said I owe €673 which is more than I expected. Any advice?
Apologies if this is a stupid question!

namenotavailablE

It seems very high.
There are a couple of online calculators available that might help. Under the charter, I can't give you the link to my spreadsheet (mod doesn't approve) so I'm sending a PM.

smcgiff

They've simply taken 35,000 and divided by 52.

However, of the €673 extra gross they would have paid you they would have deducted PAYE, PRSI and USC.

They may expect you to pay the €673 back to them and reclaim the extra tax paid from the Revenue through asking for a P21. I think you'd have to separately ask them to calculate your PRSI/USC over payment.

How badly do you need to get a reference from them? You need to pay them back the Net of tax amount, but at your own convenience I suggest.

blondie82

Great thanks for your help all.

Just emailed them explaining they hadn't deducted tax etc. Have no prob paying it back if it's certain I can get the tax back from revenue - will be requesting a P21 anyway as I only worked up til the end of July. Just need to make sure my employer hasn't messed up my P45 - they have sent it to my home but I'm still abroad. They have a history of messing up stuff like this so I'm gonna take my time & check with the revenue before I do anything.
Thanks again

barneystinson

smcgiff wrote: »

They've simply taken 35,000 and divided by 52.

However, of the €673 extra gross they would have paid you they would have deducted PAYE, PRSI and USC.

They may expect you to pay the €673 back to them and reclaim the extra tax paid from the Revenue through asking for a P21. I think you'd have to separately ask them to calculate your PRSI/USC over payment.

How badly do you need to get a reference from them? You need to pay them back the Net of tax amount, but at your own convenience I suggest.

I'd imagine they want the full €673 back so that they can reissue the P45, showing the gross amount as €673 lower, but with the same amount of tax/PRSI etc deducted.

The OP then claims the tax etc overpaid back from Revenue.

This would be the correct way of doing it IMO, rather than messing around with fiduciary deductions.

blondie82

thanks barneystinson

yep was thinkin that this would the most appropriate/simple way of doing it, have just emailed ex employer to ask for it to be handled this way.

thanks for the help

smcgiff

barneystinson wrote: »

I'd imagine they want the full €673 back so that they can reissue the P45, showing the gross amount as €673 lower, but with the same amount of tax/PRSI etc deducted.

The OP then claims the tax etc overpaid back from Revenue.

This would be the correct way of doing it IMO, rather than messing around with fiduciary deductions.

There's no way I'd give €673 back to the company - they messed up. The OP shouldn't have to be out of pocket for several weeks. I'd give them back the net amount and the balance once refunded by Revenue.

The company is gong to have to make an adjustment anyway to get back the extra ER PRSI paid.

barneystinson

smcgiff wrote: »

There's no way I'd give €673 back to the company - they messed up. The OP shouldn't have to be out of pocket for several weeks. I'd give them back the net amount and the balance once refunded by Revenue.

The company is gong to have to make an adjustment anyway to get back the extra ER PRSI paid.

The company didn't make a mistake as far as I can see; it appears this person was paid in advance up to the end of the month, but left without notice...

smcgiff

To be fair the company didn't make a mistake in the payroll, but I'd still only give them the net back. They'll have to adjust to get their PRSI back.

Not sure if the employee left without permission.

blondie82

Just to clairify - the company didnt make a mstake - the wages were calculated & sent through the banking system in advance as the payroll person was on hols. Meanwhile staff cuts to hours & wages were being made as a cost cutting measure. As I was leaving at the end of the month I volunteered to go a week early - it was mutually agreed between myself & management, so I didn't leave 'without permission'! No one was at fault it was just one of those things. It's a voluntary org so only the payroll person (who was on hols!) would have been able to adjust the wages - no one else is in that role.
Have decided to pay the full amount back & claim the excess from the revenue as I will be requesting a P21 anyway to claim my unused tax credits for the year. Have checked my P45 & they have stated the income as paid minus the amount I owe back but the tax etc as I actually paid it, so they obviously trusted me to pay it back!
Thanks everyone for your help.