After 29 years of employment, I retired. My final paycheck included my salary, vacation, sick, comp time, insurance, union dues and etc. With all the various benefits that I was being paid for & deducted, I had no idea that there was an overpayment, nor did my former employer until 1 month later. The money is gone (paid off bills) and now they have discovered their error, but have not indicated what amount is in question but have said they paid for all the sick time earned instead of a % of the sick time. Am I legally reponsible for repayment? Also, income taxes have been paid on the overpayment so how is that worked out if they are reimbursed?
2007-04-23 10:32:50 · 5 answers · asked by WonderingNTexas 1 in Business & Finance ➔ Careers & Employment
they should have checks in place to catch errors like these before paychecks go out. Their error cost them. The ethical thing for you to do is to repay the amount of the error - but you did not know it was an error and now the money is gone. They may be able to go after you (depending on circumstances), but most likely will not if they determine legal fees will be more than what your overpayment was.
This happened with 3 employees at a previous job of mine. One employee paid the company back immediately, the other two had the money taken from their paychecks over the next several weeks.
If you reimburse them, you'll adjust your income next year (& thus reduce your taxes paid next year). Don't worry about that part.
2007-04-23 10:49:57 · answer #1 · answered by Sharon 3 · 0⤊ 0⤋
Legally yes but really they should not and probably will not pursue it if you stick to your guns, be polite & persistent and only reply in writing saying that in good faith they should accept the loss, since you have retired, spent the money and now living on a pension. If they insist on you re-imbursing they legally are accountable for the tax. Tell them you will only re-imburse the after tax amount and can they work it out. This will be a pain in the whatsit for them and at they point they will probably give up! Good luck.
2007-04-23 13:39:42 · answer #2 · answered by Debs 3 · 0⤊ 0⤋
My guess is that, yes, you are liable for repayment of the overpaid amount. If you are unable to pay or refuse, for whatever reason, they might have an action against you for 'unjust enrichment.' Talk to a lawyer that specializes in employment law to find out for sure.
2016-05-17 07:08:57 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Im sure you will have to pay them back. Its a completely different set of circumstances but a local gas and electricity supplier refunded me over £600. I phoned and questioned them about it but they were sure it was correct now nearly a yr later they are demanding it back or i face legal action. I have had legal advice and it looks like i hve no choice, crap eh
2007-04-23 11:09:22 · answer #4 · answered by Amy A 2 · 0⤊ 0⤋
Legally you are bound to repay.But if you stand firm they may not fight.Reputed companies are concerned about their public image.Morality requires refund excess payments received.If you dont pay they may recover amount from people who comitted the mistake.
2007-04-25 21:54:47 · answer #5 · answered by leowin1948 7 · 0⤊ 0⤋