Overpaid commission

Butlers1982

Friend of mine has been overpaid £1000 in commission this month.

Obviously she will pay it back but just a couple of questions

1) what happens with the tax and NI that have been paid?
2) can they just take the £1000 out of my account or does shehave to arrange for the money paid back?

Yes she would like to keep it and tell them it's their fault (they actually contacted her to tell her about the mistake first thing this morning!) but morally she wouldn't do that.

Anyone else been in this situation before? What did you do? How did your employer claim it back?

Thanks in advance

meg72

Sorry am a bit confused here,why would they take it fromyour bank account if its your friend who has been overpaid?

Butlers1982

meg72 Sorry am a bit confused here,why would they take it fromyour bank account if its your friend who has been overpaid?

Woops sorry that is confussing! I was writing it for a friend then saying it was my account!

It is her wage into her account!!

Jaybee_16

The payroll department should recalculate the payslip and tell you the net amount due to be repaid.

A simple process they can easily do if they feel like it.

Butlers1982

But can they automatically take it out of the account? Should she not have to give some sort of authority? I mean surely they cant just take it out on their say so?

Gerson2k

Butlers1982 wrote: »

But can they automatically take it out of the account? Should she not have to give some sort of authority? I mean surely they cant just take it out on their say so?

You're correct, they won't have the authority to request funds from her account, but will most likely reclaim the overpay by way of deductions from future pay run(s).

meg72

Butlers1982 wrote: »

Woops sorry that is confussing! I was writing it for a friend then saying it was my account!

It is her wage into her account!!

I see that makes it clearer thanks,No they cannot take it from her account but I think they will probably deduct it from her next pay.

They should recalulate to allow for tax etc.