Real-life MMD: Should I let my brother pay staff twice?

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  • nivagh
    nivagh Posts: 2 Newbie
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    If you have noticed an overpayment, you're ethically bound to do something about it, regardless of the fact that you're looking over the accounts in an unpaid capacity.

    If the business is doing very well, and the employee is struggling, it should be a simple matter to agree a mutually convenient repayment schedule.

    Nobody needs an accountant who is prepared to leave deliberate errors in their accounts.
  • cheerful
    cheerful Posts: 36 Forumite
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    As is so often the case with MMDs - communicate!

    Talk to the employee first.

    They may not have realised about the overpayment, they may have noticed it and thought it was to cover something else, they may have spent it before they realised any error and now be frightened of the consequences, they may have noticed it and naively thought no one else would notice, etc. You cannot know until you have spoken to them. You might even decide to let the employee notify your brother in order to maintain goodwill.

    You can all then work out how to deal with the situation.
  • Mouseboy007
    Mouseboy007 Posts: 34 Forumite
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    How about you charge your brother for your time the exact amount the employee gained. You can then pay the employee that exact amount of money for a menial favour like washing your car etc.

    That way no monies need to change hands and the whole thing can be legally written off. :D
  • eileen_forward
    eileen_forward Posts: 30 Forumite
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    Talk to the employee first. Give him the chance to decide what he is going to do. Then tell your brother what has happened.

    This happened to us at work. Most paid back instantly. Those that didn't had the money taken back the following month. It was not a dilemma for me. I expect my wages to be corrected the day I find a mistake, therefore I did the same.

    :D
  • Cimscate
    Cimscate Posts: 145 Forumite
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    If you are working unpaid for your brother presumably it is because you choose to. It is a gross abuse of trust not to tell him if there is a problem like this. Also who was responsible for making 2 payments to the same person? Was there perhaps a reason that you are not aware of but your brother is.........unless you made the payments in which case it looks like you're covering your own error. This is FAMILY, it doesn't matter how well the company is doing, you should be on your brother's side.
  • osaddict
    osaddict Posts: 281 Forumite
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    Isn't your brother going to think you're a terrible accountant if you've 'not spotted this'?
  • tgroom57
    tgroom57 Posts: 1,431 Forumite
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    There is a small matter which has slipped everybody's attention in their hurry to tar & feather the employee -

    How on earth did he come to be paid twice?
    I would want to find out exactly how this managed to occur so as to prevent it happening again.

    Then -and only then- have words with your brother and see if he is happy to write the sum off. He may already be aware of it, and there may be some other explanation entirely.
  • Barryfan
    Barryfan Posts: 67 Forumite
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    I don't think it is your decisiointo make is it? You should alert your brother and leave it to him to make the decision. Would you have alerted him to an overpayment if the staff member concerned was not struggling financially? If you would then you should do the same this time.
  • onesixfive
    onesixfive Posts: 485 Forumite
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    I would take this opportunity to sort the whole lot out at once.
    Do it in letter form if you cant address it face on.
    1. point out the duplication of payment & apologise for failure to report error.
    2. offer a sample letter from him/you to the employee with solutions ie: payback at mutually agreeable weekly amounts, (remember he may already know about it) - its then up to him if he sends it or not.
    3. finally, suggest you may be able to dedicate more time to his accounts if it was carried out on a more formal/paid arrangement with him, (and you could pay childminders/work less hours elsewhere or whatever),
    and such mistakes would hopefully not happen in future.
    This way he can take it or leave it - or look elsewhere for his accounts to be done.
  • pennypinchUK
    pennypinchUK Posts: 383 Forumite
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    As the firms accountant (whether paid or not) it's your responsibility to manage the finances and report them accurately. It's not your business, so it's not your money. You have no right to keep quiet. It is your responsibility to tell your brother. What he decides to do is a completely separate matter.
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