Overpaid by Employer Not Sure What to Do

lilyesp on 08/11/2024 - 17:06
Last edited 08/11/2024 - 19:59 by 1 other user

Hi all, I recently got notified by my employer that I was overpaid in October by $4800.

They've asked me to pay this back. This is the pre tax payment..i.e. I only received like ABT $3800 after tax was withheld.

I'm wondering if I need to pay the $4800 or just $3800

Mainly because if I pay the $4800 I need to pay all that from my post tax dollars. I would eventually get the $1000 back via tax but that would be at the end of the financial year.

I checked ATO

Which states:

Overpayment identified in the same financial year
If an overpayment is identified in the same financial year it is paid, the employee will only need to repay the net amount of the overpaid amount. The net amount is the amount received by the payee.

Details of the overpayment should not be included on the employee's PAYG payment summary. The overpaid amount can be repaid in the same financial year or a subsequent financial year.

Any advice before contacting payroll?

Cheers

Financial

Comments

  • bobbified on 08/11/2024 - 17:10
    +15

    Pay back what you got in cash only - they can balance out the tax part of things on their end!

    Then check your next payslip to make sure the Gross Taxable and Tax Witheld figures have been corrected.

    • lilyesp on 08/11/2024 - 17:13

      Oh should I ask for an amended payslip then?

      • bobbified on 08/11/2024 - 17:19
        +5

        Are you still working at the company? If you are, it'll be on your next regular payslip. There's a Year-To-Date/running total of those figures on there.

  • MS Paint on 08/11/2024 - 17:12
    -2

    I recently got notified by my employer

    Were you secretly hoping they wouldn't notice?

    Surely you were aware of the extra money.

    • lilyesp on 08/11/2024 - 17:13
      +1

      Lol I don't usually check my payslips but I guess I should if they do errors they may pay me less

    • jv on 08/11/2024 - 17:28
      +2

      Were you secretly hoping they wouldn't notice?

      my money's on that…

  • airzone on 08/11/2024 - 17:19
    +3

    You already know what to do. You pay back the net value. Payroll will give you the payment details. Make sure you get a receipt for it. Keep a record to make sure it's not part of your income statement at the end of your FY.

    • lilyesp on 08/11/2024 - 18:09
      +1

      Is the net =gross minus tax

      • larndis on 08/11/2024 - 21:24

        yes

  • RiseAndRuin on 08/11/2024 - 17:20
    +14

    FWIW I'd ask them to take the money back in the next pay cycle(s) and fix it on their end.

    • jv on 08/11/2024 - 17:27
      -3

      why?

      • RiseAndRuin on 08/11/2024 - 19:11
        +5

        It can get messy, and that's the easiest solution.

    • this is us on 08/11/2024 - 18:12
      +4

      I agree… I've been in the situation before and that was the plan when Payroll contacted me. They just told me that I had been overpaid and that they will correct on next payment, which I agreed with.

      The following payslip was a mess with all the adjustments.

    • andrek on 09/11/2024 - 09:19

      Very easy to reconcile the super, taxes and net amount if it's just done in the next payroll. Especially since it's in the same financial year.

    • Jono05 on 09/11/2024 - 13:48
      +1

      This way is the best way. They’ll subtract the gross amount and you don’t need to worry about the tax adjustment.

  • try2bhelpful on 08/11/2024 - 17:21
    +1

    See if this affects your superannuation payments as well.

    • jv on 08/11/2024 - 17:27
      +1

      it probably does

  • jv on 08/11/2024 - 17:26
    +1

    I'm wondering if I need to pay the 4800 or just 3800

    the 3800

  • brendanm on 08/11/2024 - 17:27

    the employee will only need to repay the net amount of the overpaid amount

    Seems pretty straight forward?

  • InfiniteRegression on 08/11/2024 - 17:29

    You would only need to pay back the difference between your expected after tax vs overpaid after tax. Payroll will rebalance your before tax including your superannuation payment if required. If the money has already been spent you can request to pay it back in installments in a reasonable timeframe.

  • Jimothy Wongingtons on 08/11/2024 - 17:48
    +2

    "As of this moment, lilyesp no longer exists. Say hello to Miguel Sanchez!"

  • Hellfire on 08/11/2024 - 17:51
    +3

    Tell them to take $100 out of each pay until the total is repaid.

    • MS Paint on 08/11/2024 - 17:57
      +1

      I believe employers are entitled to recover the amount over the same period it was paid.

      • AndyC1 on 08/11/2024 - 19:53

        They are, but NOT gross V's after tax.

    • lilyesp on 08/11/2024 - 18:10
      +1

      Don't really want to annoy them lol

    • jv on 08/11/2024 - 18:17
      +1

      Then they would all be included as income and you'll be paying more tax in the current financial year.

  • AndyC1 on 08/11/2024 - 19:52
    +1

    Get them to adjust the next pay by the gross amount they are requesting that way you do not get stuffed around by the tax implications and they can fix it. You will need to give them permission for a "once off gross adjustment in the amount of $4800".

  • djones145 on 08/11/2024 - 20:24
    +1

    your employer
    or ex employer with debt collectors?

  • AustriaBargain on 08/11/2024 - 20:27

    Start the car.

  • holdenmg on 09/11/2024 - 09:25

    If they gave you a pay rise and backdated it then problem solv'd. lol

    Look at: Fairwork Overpayments
    https://www.fairwork.gov.au/pay-and-wages/deductions-and-rel…

  • Meho2026 on 09/11/2024 - 09:49
    +1

    The same thing happened to me once. I entered into a repayment plan. The friendly payroll lady told me as long as I offered to pay at least $26/fortnight they couldn’t refuse.
    So I did that $26, I resigned after 2 years and the outstanding balance was taken from my last pay

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