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Real-life MMD: Should I let my brother pay staff twice?
Former_MSE_Debs
Posts: 890 Forumite
Money Moral Dilemma: Should I let my brother pay staff twice?
I handle the accounts for my brother's business as a unpaid favour. I've spotted we've paid an employee twice by mistake. I'd usually ask the employee for the money back, but he's struggling financially, unlike my brother's firm, which is doing very well profit-wise. I'm tempted to keep quiet - the cost's nothing compared to paying for an accountant, but don't think my brother would see it that way.
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I handle the accounts for my brother's business as a unpaid favour. I've spotted we've paid an employee twice by mistake. I'd usually ask the employee for the money back, but he's struggling financially, unlike my brother's firm, which is doing very well profit-wise. I'm tempted to keep quiet - the cost's nothing compared to paying for an accountant, but don't think my brother would see it that way.
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Note: Please remember that these are real-life Money Moral Dilemmas and while we want you to have your say, please remember to be nice when you respond.Previous MMDs: View All
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Comments
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IMHO, it's dishonest not to report the money going missing from the accounts.
Doing something bad for the right reasons doesn't make it okay.0 -
He has lied to your brother by not reporting the error I don't think that you should be helping him like this it is dishonest so what else is doing for that he shouldn't? You will also loose your brothers trust if he finds out you have covered this up.0
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I'd be tempted to agree with SilkCutBlue. It's not just a moral dilemma, especially as it's family, but there's some legality issues. I'm guessing that you must work in finance and you are therefore governed by the FSA (or whatever it's just been renamed to)? Therefore you must be whiter than white.
The other thing with the person who is hard up, money you aren't entitled to is money you aren't entitled to. To be honest, they're probably racked with guilt (I know I would be and I'm hardly the most honest person in the world, hence why I rarely answer the dilemmas).The smaller the monkey the more it looks like it would kill you at the first given opportunity.
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What about discretely asking the person to own up?0
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No, of course you shouldn't. But I would
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You really do have a dilema here - you don't say how big your brothers company is - however as an accountant I would say that if his accountants are any good they should find it at the year end, if they don't they aren't worth the money he's paying them! Your brother would probably be really disapointed that employee not come clean though as any trust in him maybe gone.0
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So the overpayment is going to show up on HMRC records and will be visible when the accounts are audited. Your brother will find out and will never feel able to trust you again. He will never be able to trust the employee again. This is lose/lose.
Front up to the fact the employee has been paid twice. Tell your brother the facts and ask if anything can be done to help with the financial issues such as a loan at a favourable rate or a salary review.
Anything else is deceit.0 -
It's your responsibility to bring it out into the open.0
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I would have a quiet word with the employee, he must realise he's been overpaid and having it out in the open could be a big relief for him. Work out a repayment plan, you've mentioned he's struggling, so sort something out he can live with. Once that's done, tell your brother and make a note for the records. As others have said, the tax man as well as the accountants will spot the error sooner or later so much better to deal with it now in-house and have it all on the record.
Also, as part of your duty of care to your employee, I'd think about referring him to an advice and / or debt management organisation like the Citizens' Advice Bureau, see if they can give him some good pointers so he'll struggle a bit less.
Then, I'd have the payroll system thoroughly assessed to make sure no other duplicate payments occur, the poor employee really shouldn't be put in the position of thinking he's got a windfall when it's an accounting error!0 -
You really do have a dilema here - you don't say how big your brothers company is - however as an accountant I would say that if his accountants are any good they should find it at the year end, if they don't they aren't worth the money he's paying them! Your brother would probably be really disapointed that employee not come clean though as any trust in him maybe gone.
No dilemma, it's easy. It has to be recovered.0
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