Money Moral Dilemma: My employer keeps overpaying me and isn't taking the money back

MSE_Sarah

This week's MoneySaver who wants advice asks...

My employer's been overpaying me by a large amount every month. I've flagged it with payroll and my managers via email; they thanked me and said they'd take the money back in small amounts each month. But that hasn't happened, they've kept overpaying me. I've been putting the extra money in a high-interest account, and while I've no intention of keeping it, friends and family say it's OK to sit on it and keep earning interest. But it's mounting up and starting to worry me. Do I keep chasing work about it or just wait for them to sort it out? 

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are emailed in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

 If you haven’t already, join the forum to reply.
 Got a Money Moral Dilemma of your own? Suggest an MMD.
 View past Money Moral Dilemmas.

Woodstok2000

You're being sensible. Keep chasing your work each payday, keep the money aside so you can repay it when asked, but make the most of it by generating interest. Good job!

You may want to check if this will have an impact on your tax status, benefits or pension payments etc,and make sure you claim any out of pocket expenses when you eventually do need to pay this back.

Tabieth

I think carry on doing exactly what you’re doing. Continue to the overpayments separate in an instant access account so you can pay it back. And keep all your emails flagging this to your manager and payroll department. 

El_Torro

Yeah, I think the OP is doing the right thing here. As long as you know that the money isn't legally yours and you will have to pay it back at some point then you should be OK. Good idea to earn some interest on the money while it is in your possession. 

As mentioned do keep flagging the overpayments to your employer.

Marcon

Good to have an email trail. Maybe now is the time to actually speak to someone about this?

Bingokitty

You are doing the right thing, however, this is also a money laundering technique. Not suggesting that’s what’s going on but keep on covering your tracks as you have been doing. 

Heinous

If go to citizens advice bureau or a solicitor. 
If your employer is that inefficient, there may come a point when that money is yours.
Not saying that's so, but worth checking. 
Meanwhile, kept reminding them and don't delete the emails.

GPywell

Don’t forget that these extra payments you’ve received will most likely have been subject to tax and NIC therefore don’t simply repay your employer from the account you’ve wisely opened. I suggest that once your employer’s payroll department wakes up to the error I would arrange to have the overpayment deducted from your monthly salary thereby ensuring any overpaid statutory deductions are refunded to you via the P.A.Y.E. System. 

Skier_G

I agree, keep flagging it, keep evidence you have flagged it and put the money in a savings account.  One thing you will need to keep an eye on if they ask for the money back - there may be tax or NI consequences as you may have paid both when they overpaid you. so make sure the money is taken back through your payroll, don't just give them a cheque...  

peterft

As last comment, be careful when they want to claim it back that they sort out the extra National Insurance and tax you have probably been paying.  Make sure you have the email trail well secured.

PostHoc25

I've only ever been underpaid and had to chase, but my experience taught me, as others said, keep an email record and keep pursuing it. Definitely tax/benefits and just the unease of knowing it is not yours needs to be resolved asap.

For me after 3 months of incorrect salary, I did type and print several copies of the same letter summarising my concern that the ongoing error suggested training/management or IT issues that were concerning as they underpinned the whole success of the business. I sent one copy to my line manager, one to HR, one to the Head of Accounting and sent one to the Director of Finance through internal mail cc'd all of them. I made it clear I loved my job, but felt let down that after 3 months of promises,  I felt I had take more drastic action. 

I got a phonecall from the Director of Finance by the end of the day who apologised, said he had not been aware of any issues and I was right to be alarmed, and that he was making it a priority to have a review with all concerned.  Got my back pay sorted within 2 days.  Sometimes I feel you do need to go over departmental heads to get results, but with a bit of patience and luck it can be done professionally and politely without the need for any bad feeling.