Holiday pay on final payslip after resigning is incorrect

General_Grant

katies_mum said:

Its been nearly 24 hours since she contacted the finance department do you think it is too early to chase a reply?  thank you.  

As payday is tomorrow, 15 March, they will already have supplied details to their bank so chasing now is exceedingly unlikely to change that.  I'd wait to see what turns up.

katies_mum

She is assuming she will be paid the incorrect amount that is on her pay statement for March and the discrepancy will be sorted sooner rather than later, she just wants them to reply to her email and admit in writing they have messed up, confirm what they owe her and that it will be paid within the next week or so. That is in an ideal world 

katies_mum

Hi,  she has just checked her bank account and has been paid the incorrect amount (was hoping they might have done an adjustment but that was wishful thinking)

She is sending an email tomorrow morning saying how disappointed she is that they have not replied, mentioning she has spoken to ACAS and has asked for a reply that morning with a satisfactory resolution otherwise she will have no alternative but to escalate the matter.

katies_mum

Thank you all for your help.  She has received an email confirming there is an error in their calculations. The Payroll department are going to recalculate the figures and resubmit a new payslip.  They also said they will make an immediate payment.   Fingers crossed the new figures agree with the ones we have. 

Thank you x

Savvy_Sue

Just a heads up that if they've already processed her P45 they may well not give her a revised one, and the final payment will have a payslip with tax code BR, and what looks like too much tax deducted.

We're very near the end of the tax year, so simplest thing is probably to wait, add up all her gross earnings, check how much tax she's paid and then contact HMRC.

katies_mum

Thank you, will check the amended payslip and if needed will do as you suggest, your advice is much appreciated

katies_mum

Hi, sorry its me again after a little more help please:  my daughter has just received this reply and we cannot understand why they are only giving her 60% of the money they owe her, she appreciates she has to pay tax and maybe NI  but we calculated the figure to be a minimum of £350!  Are we missing something?   thank you so much x

I have had the below response this morning from our payroll department: 

The difference owed would be:

£1,626.23 - £1,158.90   Total = 467.33

60% to pay to the employee would be £280 (rounded). 

We cannot re run payroll for an employee once payroll has been authorised as it is then finalised and sent to be BACS’d.

I will therefore organise for the £280 to be paid into your account today.

Your final payslip, and P45 will be generated in April. I am aware it is not ideal that this has had to be corrected in April, but I am sure you can appreciate from the above email that this is not the schools decision. We are unable to override the processes of the payroll department.

Penguin_

katies_mum said:

Hi, sorry its me again after a little more help please:  my daughter has just received this reply and we cannot understand why they are only giving her 60% of the money they owe her, she appreciates she has to pay tax and maybe NI  but we calculated the figure to be a minimum of £350!  Are we missing something?   thank you so much x

I have had the below response this morning from our payroll department: 

The difference owed would be:

£1,626.23 - £1,158.90   Total = 467.33

60% to pay to the employee would be £280 (rounded). 

We cannot re run payroll for an employee once payroll has been authorised as it is then finalised and sent to be BACS’d.

I will therefore organise for the £280 to be paid into your account today.

Your final payslip, and P45 will be generated in April. I am aware it is not ideal that this has had to be corrected in April, but I am sure you can appreciate from the above email that this is not the schools decision. We are unable to override the processes of the payroll department.

Well you can, they can roll the payslip back for the period, re-run the payslip & then pay the difference to the employee. Then submit an FPS adjustment to HMRC.

katies_mum

Thank you, it seems they aren`t capable of what you are suggesting!  maybe they are trying to do it the easy way for them. It makes me really worried how many others they have conned out of their hard earned cash with their `strange` calculations.  She just has asked for a full breakdown of their calculation as they are taking 40% off her, she was expecting approx £330-350`ish not £280

katies_mum

The reason that you would only receive 60% initially is to allow for tax / NIC and pension deductions. At this stage I am unable to provide a final figure, as the workings from payroll are the ones which I have already sent to you earlier today. This deduction is made to ensure you are not overpaid, and so an estimation of deductions is used.

The final figure will be calculated and detailed on your April payslip and any balance owed will be paid to you in April, your final payslip and P45 will be issued then also.

I appreciate this is not the outcome you were hoping for, but unfortunately, payroll will not do another pay run this month to make the correction.  Therefore, I am making a separate payment today for you to ensure the money is with you without further delay.

Please be assured when this is processed through the payroll in April, you will receive the full Gross amount which is due to you minus any tax and NI deductions, along with the value of £280 which has been paid to you today.

Nothing more she can do apart from wait until April! and double check their figures as pension deductions should not be made as it says on her payslip for the holiday amount it is Not Pensionable.