I have a brother who left a job recently. He has received two paychecks since he left; seems someone in payroll has made a mistake. Aside from the moral issues tied with this, what would the law say. I believe that his former employer would have every right to the money back. Additionally, there were payroll taxes deducted which I assume the employer would want from my brother.
My brother thinks the money is his and is currently spending it on some bills. I want to give him some advice before he digs himself in too far.
Anyone have any thoughts?
2007-01-10 08:07:53 · 8 answers · asked by AZ Ian 2 in Business & Finance ➔ Careers & Employment
HE IS BEING PAID VIA DIRECT DEPOSIT
2007-01-10 08:22:07 · update #1
If he got fired I do believe they are supposed to pay for about 1 month after that yet.
But if he quit ...maybe they held back some money ...maybe longer then 2 weeks as usuall?!
If they didn't ask to have it back, I'd keep it ....but i think it would be best to contact his previous employer about the whole situation.
2007-01-10 08:33:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Well, is your brother a gambling man?
It totally depends on the company if they will ever catch their error or not. If they don't catch it, then he is of course, scott free.
But if they do (and if they have stringent controls in place they might) they will request the paycheck back. But as for the taxes it may depend. Companies pay payroll taxes in lump sums, not individually marked for taxes. If this is caught before w-2's are reported (February 28) then the company can just adjust it's books and this would not result in your brother owing anything for taxes as the error is not his problem, nor has he received any benefit from the taxes.
As far as paying the company back, they will have to send a letter requesting it, then if he ignores them they would have to sue him to recoup and that could take awhile.
2007-01-10 08:19:17 · answer #2 · answered by Gem 7 · 1⤊ 0⤋
The money may be his. Usually employers are two to four weeks, about two paychecks, behind in paying employees. If he continues to recieve paychecks he is not entitled to, he would most definitely have to re-pay that money once the company finds out. This money may also be a part of a severance package or other deal your brother has with his former employer.
2007-01-10 08:16:39 · answer #3 · answered by msi_cord 7 · 0⤊ 0⤋
On what grounds did he leave his job. Are they paying him severance pay? I can't imagine that they would be sending him paychecks to his house without someones knowledge. They'd have tot put a stamp on it and put it in the mail box. Doesn't this employer generally give their employees their paycheck at work on payday??
Good chance he's not gonna listen to you anyway.
But, I think your probably right....I think they probably would be entitled to their money back..probably not the additional in payroll taxes...however, if the company is so big that they are paying him without anyones knowledge, they will just quit when they figure out their error, and won't bear the additional expense of law enforcement.
2007-01-10 08:19:19 · answer #4 · answered by Shelly B 5 · 0⤊ 0⤋
They have every right to try to get the money back. From a practical standpoint, however, it may not be worth their while to pursue this legally. The larger the company, the less likely they are to pursue it much beyond a letter or two. Just tell your brother to not count too much on this being a windfall in case the employer decides to bring legal action.
2007-01-10 08:17:46 · answer #5 · answered by rkoblitz 6 · 0⤊ 0⤋
Simply stated, if it's not severance, they can (and most likely will) demand the return of the money. That's the law. If he spends it and does not return it and they find out, good luck. Lawyers will cost much more if he doesn't have the cash to return.
2007-01-10 08:23:31 · answer #6 · answered by heynow 3 · 0⤊ 0⤋
I would call the company...maybe it is insurance buyout if he opted out for insurance. If it is that then they will stop coming soon. Was this a salary job? If it was hourly, it is most likely the insurance buyout.
If not this, I would call the company and explain to them the situation.
2007-01-10 08:16:56 · answer #7 · answered by James C 3 · 0⤊ 0⤋
don't know
2007-01-10 08:11:02 · answer #8 · answered by me 3 · 0⤊ 0⤋