We have paid an employee for the whole of May but they left on 27th without giving notice, so I have been asked to request 3 days salary back from them. Do I ask for the difference in net pay between what they did take home and what they should of taken home with the 3 days deducted and should I include the extra employers NI I have paid on the overpaid amount?
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I think
You would re-run the salary with the correct gross pay, see what the revised net pay is and collect the difference from the employee.
The employers nic would be adjusted in the re-run.
Care needed re holiday pay
Whilst their not giving notice may have reduced the quantum of accrued holiday pay due to date of leaving I would be careful to check that they have no balance of accrued entitlement.(minimum 28 days per annum pro rata)
I have had one client who ended up having to pay holiday pay post event, plus of course professional costs for the hearing; in reality if the amount is not significant often it is simpler to let sleeping dogs lie.
If they left without giving notice ...
... how readily are they going to hand back the overpayment? If I were the employee I might just be saying "go ahead and sue me for breach of contract".
If I were the employer . .
... how readily are they going to hand back the overpayment? If I were the employee I might just be saying "go ahead and sue me for breach of contract".
I might just do that.
Edit BKD, I'm not having a go, but is your view that the OP should do nothing?
I suppose like everything
... how readily are they going to hand back the overpayment? If I were the employee I might just be saying "go ahead and sue me for breach of contract".
I might just do that.Edit BKD, I'm not having a go, but is your view that the OP should do nothing?
It depends on the amount involved.
Unless, of course, it's now personal ;)
You are right
... how readily are they going to hand back the overpayment? If I were the employee I might just be saying "go ahead and sue me for breach of contract".
I might just do that.Edit BKD, I'm not having a go, but is your view that the OP should do nothing?
It depends on the amount involved.
Unless, of course, it's now personal ;)
But the prospect of recovery is improved by at least going through the motions. The threat of action might well have the desired result without having to see it through.
As JCresswell says
your first step is to rerun the payroll with the right salary so that the tax and nic you pay to HMRC is correct. You then send a revised P45 with the letter explaining you had paid them too much, and please can you have their cheque for £x by return.
P45
Unless you can retrieve all the parts, making it like it was never issued, you should never issue a revised P45. I would say that goes double in this situation, where the original P45 accurately reflects what has actually been paid to date. You then send a revised P45 with the letter explaining you had paid them too much, and please can you have their cheque for £x by return.
Definition of pay
I have no doubt that the payment should be reclassified - only part was subject to PAYE and I believe that HMRC guidance does allow for a suitably marked as amended P45 to be issued.
I havew certainly received one in the past, although that was due to an error in calculation as opposed to amount to be taxed