Overpaid monthly salary

Jayeire

Hi,

I'm just looking for some advice regarding my most recent monthly salary which was overpaid to me.
I left my job on 14th August and was overpaid (paid for the full month instead if pro-rated to 14 August) on 25th August.

I flagged this to the payroll team, who have told me to pay it back this month. Which isn't ideal, but I will pay it back of course as it isn't mine - turns out they didn't process my resignation properly/on time.

My question is, what do I do regarding the extra tax I (over)paid last month on my overpaid salary? The amount payroll are asking for back is the gross amount, not net.
Do I just request a balancing statement at the end of the year and hope for the best? Is there anything else I should be doing?

Any advice would be appreciated as I get paid this month from my new job and don't want my tax to be completely off.

Thanks!

antix80

First, make sure they paid you any holiday pay you accrued.

Then tell them to update your tax record on ros.. If they deducted a pension contribution they'll need to fix that too. Then tell them to reissue your payslip, or at least provide a schedule showing the correction has been made.

You can verify the amended record on "paye anytime. "

When that's done, you write them a cheque.

I was through the same process with my old employer.
I sent them an email asking for an amended payslip. They refused. I asked them to update ros, they said (and I quote) "no really, all we do is enter your leave date"

I said, that's fine. When my tax has been sorted I'll refund the overpayment.

2 months later, lo and behold, they emailed me to say they fixed up my tax. I checked Paye Anytime, and I transferred the money to their bank account the following day.

thefa

Jayeire wrote: »

Hi,
My question is, what do I do regarding the extra tax I (over)paid last month on my overpaid salary? The amount payroll are asking for back is the gross amount, not net.
Do I just request a balancing statement at the end of the year and hope for the best? Is there anything else I should be doing?

Good advice above from the last poster. Just had to comment on the part quoted - under no circumstances would I give them the gross overpayment. I imagine this will just get credited against their labor costs and the extra pay is unlikely to be corrected on their side from a. Revenue perspective. Sounds like a smallish operation if they are trying to get you to cover the additional costs and admin to fix their error.

Jayeire

antix80 wrote: »

First, make sure they paid you any holiday pay you accrued.

Then tell them to update your tax record on ros.. If they deducted a pension contribution they'll need to fix that too. Then tell them to reissue your payslip, or at least provide a schedule showing the correction has been made.

You can verify the amended record on "paye anytime. "

When that's done, you write them a cheque.

I was through the same process with my old employer.
I sent them an email asking for an amended payslip. They refused. I asked them to update ros, they said (and I quote) "no really, all we do is enter your leave date"

I said, that's fine. When my tax has been sorted I'll refund the overpayment.

2 months later, lo and behold, they emailed me to say they fixed up my tax. I checked Paye Anytime, and I transferred the money to their bank account the following day.

Thanks for your help!
They paid my holiday pay luckily.

They said that they won't update Revenue.ie until 25th Sept, which will be the next pay date internally. I've added my new employment to Revenue, so now I have my new job and old job listed online.

If I request an amended payslip, should I then expect the amount I'm paying back to be less and tax adjusted correctly? (Sorry just trying to make sure I understand correctly).

Jayeire

thefa wrote: »

Good advice above from the last poster. Just had to comment on the part quoted - under no circumstances would I give them the gross overpayment. I imagine this will just get credited against their labor costs and the extra pay is unlikely to be corrected on their side from a. Revenue perspective. Sounds like a smallish operation if they are trying to get you to cover the additional costs and admin to fix their error.

Surprisingly they're a huge technology multinational!

I will definitely try my best not to pay the gross back, but from investigation online it seems to be what a lot of people have done in my situation.
I'm hoping what the poster mentioned above might mean that I won't have to pay the full gross chunk.

_Brian

Repay the exact amount you received and leave it with them to chase the rest.

GerardKeating

Jayeire wrote: »

I'm hoping what the poster mentioned above might mean that I won't have to pay the full gross chunk.

No, as another poster mention, wait for them to calculate and generate the amended payslip.

When you get this corrected/amended payslip, you will know the exact amount of the overpayment, and only then can you settle the debt.

You should make it clear to them that you are waiting for the amended payslip, so that you can know the exact amount of the overpayment.

Remind them frequently...

You should have said nothing and let them come looking for it, they may not have noticed especially for an employee that was leaving.

antix80

_Brian wrote: »

Repay the exact amount you received and leave it with them to chase the rest.

Don't do this. It can still create a problem at the end of the year as income will be overstated and the op will pay the higher rate of tax and USC on it

gross pay €1000
tax €300
net pay €700.

end of year balancing statement.
op pays tax at higher rate.
gross pay €1000
tax €500
net pay €500.
So op will owe the taxman €200.

listermint

_Brian wrote: »

Repay the exact amount you received and leave it with them to chase the rest.

Meaning they will do nothing ...


Terrible advice.

inthenip

Your pretty honest OP, I probably wouldn't have saying anything and if they did come back to me I would say thought it was sick days or bank holidays owed.

Yea as other posters have said let them amend the payslip.

Green Mile

The payroll team will put a full months negative gross pay in the next salary cycle, reversing taxes etc (credit to you) and will apply a pro-rated salary back to you in the same period.
This does result in negative net pay but they’ll fix that by offsetting the return net pay paid back by you.
Essentially, you don’t need to worry about your taxes, payroll team will look after it for you.

_Brian

listermint wrote: »

Meaning they will do nothing ...


Terrible advice.

Green Mile wrote: »

The payroll team will put a full months negative gross pay in the next salary cycle, reversing taxes etc (credit to you) and will apply a pro-rated salary back to you in the same period.
This does result in negative net pay but they’ll fix that by offsetting the return net pay paid back by you.
Essentially, you don’t need to worry about your taxes, payroll team will look after it for you.

No as Green Mile says above they are responsible for the stoppages and are responsible to resolve the issue...


OP can only repay the amount they received... paying less or more would be incorrect.

3DataModem

OP the only advice you need on how to handle this is here:

antix80 wrote: »

First, make sure they paid you any holiday pay you accrued.

Then tell them to update your tax record on ros.. If they deducted a pension contribution they'll need to fix that too. Then tell them to reissue your payslip, or at least provide a schedule showing the correction has been made.

You can verify the amended record on "paye anytime. "

When that's done, you write them a cheque.

I was through the same process with my old employer.
I sent them an email asking for an amended payslip. They refused. I asked them to update ros, they said (and I quote) "no really, all we do is enter your leave date"

I said, that's fine. When my tax has been sorted I'll refund the overpayment.

2 months later, lo and behold, they emailed me to say they fixed up my tax. I checked Paye Anytime, and I transferred the money to their bank account the following day.

ibarelycare

The slight problem is that your tax credits and bands will be with your new employer. If your old employer does an amended/supplementary payslip to make the adjustment you will be on a Week 1 basis with nil credits and bands as they have to use the RPN that's allocated to them on the day that they run the payroll. This means you will repay higher than expected to them as you won't be refunded any PAYE/USC, HOWEVER provided you are on the cumulative basis you will get this refund through payroll from your new employer in your next payroll run. Make sure your old employer refunds you your PRSI you overpaid as this will not be automatically done by a payroll software, they will need to manually override the system for this.