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Overpaid wages - Repayment

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  • 27-12-2015 6:36pm
    #1
    Theprodigy11
    Registered Users Posts: 35 ✭


    Hey All,

    I was over paid by my company for 3 months which I now must pay back which is fine.

    However they are requesting I pay back my gross earnings. This means I am paying back even the tax that was deducted.

    So I am paying back the gross earnings which say is 1000 when I only received 500. This cannot be right or fair. Does anyone have any links to acts that I can reference.


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    #2
    benjamin d
    Registered Users Posts: 921 ✭✭✭benjamin d


    I'd imagine that since they've paid it already it's gone through the tax system and they can't get it back. So once you pay it back you'll be refunded the extra tax when you get your P21 balancing statement. That's just an educated guess though as I wouldn't try to claim I know the ins and outs of it tbh.


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    #3
    Mr.Carter
    Banned (with Prison Access) Posts: 209 ✭✭Mr.Carter


    Tell them you'll pay back the tax part when you get it back...


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    #4
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    At first I thought I had to wait for the end of the tax year. But I have being advised that its up to them to sort out the tax side of things.


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    #5
    Car99
    Registered Users Posts: 2,530 ✭✭✭Car99


    Theprodigy11 wrote: »
    At first I thought I had to wait for the end of the tax year. But I have being advised that its up to them to sort out the tax side of things.

    Tell em you'll pay them what you were paid and the rest when revenue return it to you and get their accountant to handle the return no point wasting your unpaid time fixing their cock up.


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    #6
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Mr.Carter wrote: »
    Tell them you'll pay back the tax part when you get it back...

    Their payroll software will balance it out in conjunction with Revenue. Don't worry OP, you won't lose out even if you repay the gross.

    But as always when I read this kind of thread, I wonder how people only "notice" overpayment in their account when the employer asks for it to be repaid.


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    #7
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    davo10 wrote: »
    Their payroll software will balance it out in conjunction with Revenue. Don't worry OP, you won't lose out even if you repay the gross.

    But as always when I read this kind of thread, I wonder how people only "notice" overpayment in their account when the employer asks for it to be repaid.

    I highlighted my overpayment to them when I was taken off emergency tax. I just had started with them. There's always one on these threads.


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    #8
    Mr.Carter
    Banned (with Prison Access) Posts: 209 ✭✭Mr.Carter


    davo10 wrote: »
    Their payroll software will balance it out in conjunction with Revenue. Don't worry OP, you won't lose out even if you repay the gross.

    But as always when I read this kind of thread, I wonder how people only "notice" overpayment in their account when the employer asks for it to be repaid.

    Maybe it time to stop reading these kinds of threads and jumping the gun :)


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    #9
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    Mr.Carter wrote: »
    Maybe it time to stop reading these kinds of threads and jumping the gun :)

    his posts don't help at all and just deviate from me getting an educate response


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    #10
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Mr.Carter wrote: »
    Maybe it time to stop reading these kinds of threads and jumping the gun :)

    The tax is not "paid back" in the sense that Revenue sends the op a cheque, the payroll/revenue online software recalculates your tax deductions to take into account the overpayment so you are paid more net in future rentrolls.

    Is that educated enough for you op? Trust me, it is more educated than the advice to keep the money until you receive your tax back.


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    #11
    cleopatra11
    Registered Users Posts: 72 ✭✭cleopatra11


    I do payroll. If someone is overpaid in error, we have to take back the gross pay.
    Do not worry, you will not be shafted.

    Say you are paid 1000 a week and you have to repay 500 a week. This money is deducted from your gross pay before you pay tax, prsi or usc on it. That means you are only paying tax etc on the 500 quid balance.
    It will all balance itsself out.


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    #12
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    cleopatra11 wrote: »
    I do payroll. If someone is overpaid in error, we have to take back the gross pay.
    Do not worry, you will not be shafted.

    Say you are paid 1000 a week and you have to repay 500 a week. This money is deducted from your gross pay before you pay tax, prsi or usc on it. That means you are only paying tax etc on the 500 quid balance.
    It will all balance itsself out.

    I have to pay back the gross. I was told then to claim it back from revenue. As this will roll on to around april I am not prepared to wait till next Jan 2017 to claim it back. What im really looking for is legislation on this to reference.


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    #13
    cleopatra11
    Registered Users Posts: 72 ✭✭cleopatra11


    Theprodigy11 wrote: »
    I have to pay back the gross. I was told then to claim it back from revenue. As this will roll on to around april I am not prepared to wait till next Jan 2017 to claim it back. What im really looking for is legislation on this to reference.


    Yes, you pay back the gross, but this repayment has to be subtracted from your usual gross pay before your tax etc is calculated. Your taxable pay will be lower than your gross....
    The payroll person should know this. They are fobbing you off.eg you are paid 1000. Your repayment is 400. Your tax should only be calculated on the remaining 600. If they are doing it on the 1000, then they are doing it wrong.


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    #14
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Theprodigy11 wrote: »
    I have to pay back the gross. I was told then to claim it back from revenue. As this will roll on to around april I am not prepared to wait till next Jan 2017 to claim it back. What im really looking for is legislation on this to reference.

    Employment contracts typically contain a clause allowing the employer to make deductions from your wages for overpayment of holidays and wages. If you just started your job, do you really want to create hassle? They are not stealing from you, the tax will balance out.


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    #15
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    cleopatra11 wrote: »
    Yes, you pay back the gross, but this repayment has to be subtracted from your usual gross pay before your tax etc is calculated. Your taxable pay will be lower than your gross....
    The payroll person should know this. They are fobbing you off.eg you are paid 1000. Your repayment is 400. Your tax should only be calculated on the remaining 600. If they are doing it on the 1000, then they are doing it wrong.

    thats exactly whats happening.


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    #16
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    davo10 wrote: »
    Employment contracts typically contain a clause allowing the employer to make deductions from your wages for overpayment of holidays and wages. If you just started your job, do you really want to create hassle? They are not stealing from you, the tax will balance out.

    I have no issues with repaying the money. I also would not be creating hassle as they are a great company to work for i just believe their repayment procedure is incorrect and they are misinformed. I also never said they are stealing from me. You seem to be just making outrageous assumptions from the start and you are adding very little to this thread. Your basically being a pest.


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    #17
    cleopatra11
    Registered Users Posts: 72 ✭✭cleopatra11


    Theprodigy11 wrote: »
    thats exactly whats happening.

    Which bit is happening... there were.2.options.


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    #18
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    Theprodigy11 wrote: »
    I have no issues with repaying the money. I also would not be creating hassle as they are a great company to work for i just believe their repayment procedure is incorrect and they are misinformed. I also never said they are stealing from me. You seem to be just making outrageous assumptions from the start and you are adding very little to this thread. Your basically being a pest.

    Mod: No backseat modding, if you have a problem with a post report it. And read the charter before you post again


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    #19
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    cleopatra11 wrote: »
    Which bit is happening... there were.2.options.

    Apols ... My tax is being calculated on the 1000


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    #20
    heroics
    Registered Users Posts: 1,878 ✭✭✭heroics


    I had the same a couple of months ago. HR sent me an email asking me to transfer the full gross amount into their account. I told them they were wrong. Deduct the gross amount from my gross pay and it all works out.

    Once this was explained to them they were fine with it. Just the HR person didn't understand.

    Talk to them op again and explain it to them. You don't need to go to revenue at all.


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    #21
    cleopatra11
    Registered Users Posts: 72 ✭✭cleopatra11


    Theprodigy11 wrote: »
    Apols ... My tax is being calculated on the 1000

    You need to go back to the payroll person. They should not be taxing you on the full amount. You are repaying an overpayment that you have already been taxed on. So in effect you are being taxed on the double. This is a basic payroll error.
    You should not have to claim this back from the tax office since it was the employers mistake. It is up to them to put it right. You should not be at a loss due to their error.
    If the payroll person cant get this, go to someone in your finance dept or to HR.
    Hope this helps.
    On another note, are 100% positive.
    Look at your payslip. It should say Gross pay and taxable pay. Are those 2 figures similar. I sometimes find people dont know how to read a payslip. No offence implied to you.


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    #22
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    cleopatra11 wrote: »
    You need to go back to the payroll person. They should not be taxing you on the full amount. You are repaying an overpayment that you have already been taxed on. So in effect you are being taxed on the double. This is a basic payroll error.
    You should not have to claim this back from the tax office since it was the employers mistake. It is up to them to put it right. You should not be at a loss due to their error.
    If the payroll person cant get this, go to someone in your finance dept or to HR.
    Hope this helps.

    its exactly how i thought that. but they use 3rd party payroll so they are just saying know. I need legislation and cant get anything on citizens advice.


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    #23
    Victor
    Registered Users Posts: 78,431 ✭✭✭✭Victor


    As we are approaching the end of year, you need to do this carefully.


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    #24
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    Victor wrote: »
    As we are approaching the end of year, you need to do this carefully.

    I think that's the issue here. OP have you gotten your last paycheck for 2015 yet?


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    #25
    Theprodigy11
    Registered Users Posts: 35 ✭Theprodigy11


    i have. the repayments started November. finish April. So I can claim back some over paid tax but dont want to wait till the end of next year to do the rest


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    #26
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    Theprodigy11 wrote: »
    i have. the repayments started November. finish April. So I can claim back some over paid tax but dont want to wait till the end of next year to do the rest

    THe fact some of the repayments are in a different tax year are potentially an issue imo.

    Does your gross pay and taxable pay match 100% in your November/December payslips?


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    #27
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    Stheno wrote: »
    THe fact some of the repayments are in a different tax year are potentially an issue imo.

    Does your gross pay and taxable pay match 100% in your November/December payslips?

    Ops tax year runs to April rather than December, this is common and therefore there is plenty of time for tax to balance out on net payment.


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    #28
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    davo10 wrote: »
    Ops tax year runs to April rather than December, this is common and therefore there is plenty of time for tax to balance out on net payment.

    Not in the RoI it doesn't, Revenue tax year is Jan - Dec. for all PAYE workers

    P60s for 2015 have to be issued in February for the period of Jan - Dec. 2015

    OPs repayments are spanning two PAYE tax years, which is part of the issue here.


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    #29
    ZeroThreat
    Registered Users Posts: 2,194 ✭✭✭ZeroThreat


    Stheno wrote: »
    Mod: No backseat modding, if you have a problem with a post report it. And read the charter before you post again

    I think the thread creator being allowed to respond to someone possible implying dishonesty is ok, it's hardly conducive to a decent discussion if everyone has to conduct a discussion through reporting each others posts instead of a good 'ole fashioned forum argument ;)


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    #30
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    ZeroThreat wrote: »
    I think the thread creator being allowed to respond to someone possible implying dishonesty is ok, it's hardly conducive to a decent discussion if everyone has to conduct a discussion through reporting each others posts instead of a good 'ole fashioned forum argument ;)

    Please read the charter, question mod instructions on thread is against the charter.


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    #31
    davo10
    Closed Accounts Posts: 6,926 ✭✭✭davo10


    ZeroThreat wrote: »
    I think the thread creator being allowed to respond to someone possible implying dishonesty is ok, it's hardly conducive to a decent discussion if everyone has to conduct a discussion through reporting each others posts instead of a good 'ole fashioned forum argument ;)

    Agreed, I never met anyone who knows everything and we are all prone to the odd erroneous post, a "put down" never hurt anyone and adds a bit of spice to an otherwise boring thread. A thick skin is a must.

    By the way, there was no implication of dishonesty on the ops part, the implication was that the employer was not stealing from the op by asking that the gross be repaid.( in the opening post the op said "this cannot be right or fair" implying that the employer was doing something wrong) The implication was that by paying back the gross, the tax would be balanced out by the payroll software allowing for the tax overpayment to be deducted from future wage payments. There is a clear difference between the two implications.


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