This is the case even if the deduction is made in accordance with an award, registered agreement or contract. My name is Andre ,I'm 17 years old and I work at a dog kennel . Can my employer take back money they have overpaid me from my wages? If you can prove that overpayment was made then you should contact the employee in question and follow the procedure already covered. Show 1 more Show 1 less . Clearly I have the money saved and will give them back what would have been the same amount I received on all of my previous checks. Employers are legally entitled to recover an overpayment by deducting it from future wages, after discussion with the employee. It's a requirement. The amounts overpaid are not salary. If you think you have been overpaid, you should contact your employer immediately to check whether or not you are entitled to the ‘extra’ money. I feel this is unfair as it is not my fault. Patrick Haggerty June 2012. Fast, Free, and Confidential. In other words, the amount that was overpaid would be viewed as a loan that must be repaid by the employee. If the employee no longer works for you things can get a bit more difficult. Whatever method you select to claim your refund for overpaid taxes, it is best to take action sooner rather than later; unless there are extenuating circumstances, the statute of limitations for filing a refund claim is within three years of the date of filing the return or two years of the date the overpayment was made, whichever is later. Example: Deducting money for till shortages. For whatever reason, my old employer paid me 1 week extra (40 hours). If the employee still works for you, then the previous points about reclaiming the money still apply. When it comes to matters of integrity I reframe from telling people what they should do. If you take this further keep in touch with me, I'm sure she would be happy to provide this in writing. The employer is required to have a written and signed policy in place beforehand stating that they may deduct overpaid … BX9 1BX . 1 decade ago. An employee can be overpaid through payroll by paying a bonus that hasn’t been awarded, or paying too much overtime or commission. Though we can match one Online Banking transaction to multiple entries in QBO, we can't match two bank entries to a single journal entry. I worked for a company in Luisiana that overpaid me. And I hate to break the good news, but yes, you do have to pay it back. Question Details: I reported it to them and they not only want me to pay the difference but they also want me to pay the additional taxes and said that I will get it back in my tax return. By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. Even if your employee repays you in the same year or a different year, you still have to include the salary overpayment and the deduction withheld on the employee's T4 slip. For example, if you overpaid salary by $200 for a particular pay period, make the adjustment as a negative so it’s taken out of the employee’s year-to-date earnings and her W-2 will be correct for tax purposes. I looked at the calculation, and he is right. I am unsure how to handle this situation. Now my pay is reduced clearly it's difficult. What can he do if I don't pay him back? She's paying me for training and this week but the things is that she already paid me for training (in cash). Basically, work have been overpaying me for just over a year (a miscalculated allowance). Compare previous net pay with revised figures and arrange payment plan out of net pay. Upon reading through the your previous post, what you did is just correct. Unfortunately, yes--they … Favourite answer. I was accidentally overpaid by my employer in 2014 and had to repay that money back to them in 2015. Jenny works as a bar attendant in a tavern and is covered by the Hospitality Industry (General) Award. While it may seem like a surprise bonus, you shouldn’t get too excited just yet. You can offer work if you feel it's right, but I personally would move on. My employer just told me that I've been overpaid for the past year and he'd like the money back. The employer may not have any written consent for regular wages, but he or she should have a written and duly signed policy in place stating the rules of deduction for overpayment for vacation pay. Or, can those agreed to types of advances always be collected back in the current year since sometimes it takes several commission cycles to collect back the total amount due from a cancellation, or because the employee signed an agreement to repay advanced bonuses out of wages if they do not become earned by a specific time frame that can cross years. Have you been accidentally overpaid by your employer? Did your most recent paycheck have an extra $50, $100, or even $1,000? Employers can recover from federal agencies any income taxes, Social Security and Medicare contributions on employee overpayments made in the current calendar year. ! For repayments made in the same year you were overpaid, you generally just repay the net overpaid wages you received, not the gross. Answered 10 years ago | Contributor . I am an hourly employee. The employer must recoup the pay within the next few pay periods. What if I Realise I’ve Overpaid an Employee Years Later? Improve this answer. 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