Work Overpaid Me - Now What?

Downtime

Got called into the office the other day. Our finance girl said that the company have been overpaying me since February at about €80 per month and that I owe them €560. She was sound enough about it - i.e. I don't have to pay it all back in one go, etc etc, but I was thinking do I owe them this money?

Surely I have paid PRSI and Tax on this over-earning and surely it is up to me how I pay it back and how and when?

Also could I say take 2 days holidays off me which would equal €400 for example?

Any advice on this appreciated.

whiskeyman

Ask them to show full detail of the overpayments.
Once happy and they can prove it, they are legally entitled to take it back.
I know, it sucks, but thats the law. You not doing it can be treated as theft.
Usually, and what seems to be done, is the company would give you time to repay back, especially that you were unaware of the situation.
HR / finance should also sort out the tax issue for you.

In relation to the holiday pay, you cant be paid in lieu of annual leave unless you leave the company, so they cant deduct the 2 days to level off the amount owed.
You're best to come to an agreement to repay in installments if its too much in one go (perhaps spread over 8 months - €70pm).

Downtime

Thats for that Whiskeyman, - obiviously I am looking at a figure of less than €560 after tax etc.

whiskeyman

Downtime wrote:

Thats for that Whiskeyman, - obiviously I am looking at a figure of less than €560 after tax etc.

Correct.
Hopefully there's no hard feelings between you and your employer over it.
I know someone who got a phone call from a former employer regarding €800 overpay and she'd left the company 2 months earlier! They still have yet to give her concrete proof of the how they came up with that figure.
Many people think "hah, it's their tough... keep it!!" but its never the case :rolleyes:
Wasnt some nurse paid nearly €1million in error last year?

Beruthiel

Downtime wrote:

Surely I have paid PRSI and Tax on this over-earning and surely it is up to me how I pay it back and how and when?

you have to pay it back if they ask
however,
as it was their mistake, you can basically come up with how you wish to pay it back, within reason of course... €20 euro a month for example

Also could I say take 2 days holidays off me which would equal €400 for example?

why not? it's worth a try

Downtime

Thanks Beruthiel - gonna give it a try anyway - its bad enough feeling €80 less well off a month not to mind having to pay more back. There is no hard feelings - honest but stupid mistake.

incisor71

whiskeyman wrote:

Ask them to show full detail of the overpayments.
Once happy and they can prove it, they are legally entitled to take it back.
I know, it sucks, but thats the law. You not doing it can be treated as theft.

A similar overpayment situation happened to me recently, over three months, and the cumulative overpayment was similar. I didn't notice it because I had resumed full-time work in January and the tax deduction figures varied (largely downwards!) from month to month. My employer split the salary "clawback" over five months... unfortunately they turned out to be the most expensive months of the year so far!!

Regarding tax returns.... it's important to compare how much Revenue are expecting to receive from you at the end of the tax year, and how much tax you would owe to the Revenue if the overpayment were ignored. The employer should at least offer to work out some kind of a two-stage clawback scheme if the repayment of the entire overpayment before the tax year's end would cause financial hardship.