Overpaid wages question

rodders

rodders

rodders

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Can't get the straight in my head.
I've been paid £424 too much this month, they paid me May over time again in Junes pay.

They've informed me of the mistake and they will take £424 back next month, out my pay.

But I won't clear £424 in my bank this month, as it'll be taxed and NI'd, so I'm my mind if I clear around £300 and they take £424 back, I'm £124 down?

Should they calc my tax and NI and only take back what I cleared?

Or am I being stupid and it'll all work itself out ok?
 
They over paid you by £424 net... and then they taking it back £424 gross...
it will all work itself out as tax and NI is based over the tax year april to april and tax is done on a percentage... just stick the extra in a high interest account and make profit..

I was overpaid by £2250 once, should have had £250 bonus not £2500.. lol... brought a new computer that month and saved me from saving up.. lol
 
slinxy said:
They over paid you by £424 net... and then they taking it back £424 gross...
it will all work itself out as tax and NI is based over the tax year april to april and tax is done on a percentage... just stick the extra in a high interest account and make profit..

I was overpaid by £2250 once, should have had £250 bonus not £2500.. lol... brought a new computer that month and saved me from saving up.. lol
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It's the other way round - there won't be any extra after a month, so OP will be out of pocket until it gets settled up at the end of the year I think.

Idk what the answer is but I'd be annoyed.
 
It would work itself out by the end of the tax year but you'd be out of pocket till then. Would come to some other kind of agreement about it.
 
rodders said:
Can't get the straight in my head.
I've been paid £424 too much this month, they paid me May over time again in Junes pay.

They've informed me of the mistake and they will take £424 back next month, out my pay.

But I won't clear £424 in my bank this month, as it'll be taxed and NI'd, so I'm my mind if I clear around £300 and they take £424 back, I'm £124 down?

Should they calc my tax and NI and only take back what I cleared?

Or am I being stupid and it'll all work itself out ok?
Click to expand...

It will work itself out, but they must take the overpayment out of your gross pay, not net.

Eg: If you normally earn 2k per month, you would take home 1,733 /month = 3,466 over 2 months.

Now in month 1 you get paid 2,424 in error, take home 2,039 in month 2 you adjust it so you get paid 1,576, take home 1,428 = 3,467 over 2 months.

If they paid you 2,424 gross in 1 month, then paid you 2,000 in month 2 but deducted 424 from your net pay then you'd only take home 3,348 over the 2 months.
 
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Yup if they take it gross it won't make any difference.

Other than you got more this month, less next.

The tax paid over the 2 months will be the same as if they paid you correctly for 2 months.
 
tom_e said:
Interesting, I'd have thought correcting their error would be a reason not to make the employee suffer by dropping below min wage rather than a time it's allowed.
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But say you were paid min wage, you'd never be able to reclaim it.

The overall picture is you had more 1 month, less the next, so the avg over the 2 months would still be above NMW.

A deduction cannot normally reduce your pay below the National Minimum Wage even if you agree to it, except if the deduction is for:

  • tax or National Insurance
  • something you’ve done and your contract says you’re liable for it, for example a shortfall in your till if you work in a shop
  • repayment of a loan or advance of wages
  • repayment of an accidental overpayment of wages
  • buying shares or share options in the business
  • accommodation provided by your employer
  • your own use, for example union subscriptions or pension contributions
Click to expand...
 
slinxy said:
I was overpaid by £2250 once, should have had £250 bonus not £2500.. lol... brought a new computer that month and saved me from saving up.. lol
Click to expand...

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GreatAuk said:
It's the other way round - there won't be any extra after a month, so OP will be out of pocket until it gets settled up at the end of the year I think.

Idk what the answer is but I'd be annoyed.
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Instead of a Christmas bonus one year, payroll upped my salary and didn't put it back down... My salary went from £35k to £38k and nobody even noticed until half way through the year :cry:

Our MD was a great boss though. Said to keep it and he'll leave the salary, just meant my annual increase coming up that year would be half what it would've been. I miss him as a boss.
 
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