Quarterly Sales Comission miscalculated

Branoic

My manager came to me yesterday to say that Payroll was on to her because they made a mistake and overpaid my commission last quarter, and are looking to try and take it back off me. Both I and my manager are furious over this. I don't earn a huge amount anyway, and that money is long gone. Also it's coming up to Christmas so I really can't afford to have money taken off me. Manager went to HR about and says she thinks that legally I'm not not obliged to repay it, and they can't take it off me without my consent, so it's up to me.

Firstly, do you know if this is correct, and secondly what would you do??

Berty

You were paid money you were not entitled to. Its a shame for you really but its not your money so you should give it back.

If your manager is going to fight your corner then let her/him but dont fight it yourself because you might come off really badly in the eyes of the directors.

the_syco

Maybe work out a plan now on paying X back per month after christmas?

dudara

I'd agree to pay it back, but only on an installment plan that suits you.

dudara

Shelflife

While they cant take the money back they can reduce the next commission payment so as to reflect the overpayment.

At the end of the day you owe them the money and its best to be reasonable about it.

Branoic

Yeah. Damn you all and your morality. I'll need to repay alright.

I've got a meeting with HR and payroll tomorrow morning to discuss. They wanted to take half it back from my Q3 payment, due November, and half from Q4 payment in February. I can't do that though - just before Christmas and I'm going away in January to Australia for a month on a trip I've been planning since this time last year! Will need to work on a repayment schedule starting after Christmas.

Clauric

OP, I must say that I think it is terrible that you were overpaid, due to the stupidity of others, an now have to pay it back. However, saying that, you will need to have it all paid back before the 31st December, 2010. If not, you and your company will be charged extra tax, as it will be considered a Benefit in Kind.

I would suggest that if the money is not too much, you get it paid back by weekly/monthly payments, or taken directly from your next comission payment. If it is a lot, I suggest that you go to the HR/payroll person, and discuss the BIK implications.

the_syco

Just remember that they f**ked up, and that you're willing to help correct that f**k up, on your terms.

Shelflife

How much of an overpayment are we talking about? i mean is it so much that you knew it was an over payment and stayed quiet or is it just that it suits you not to pay it back just yet.

if you were underpaid you would expect the company to sort it out at the next payment. i think their offer of half in qtr 3 and half in qtr 4 seems reasonable.

i wouldnt play too much hard ball as they may decide to talk it all back in qtr 3.