A client that we do payroll for said yesterday that she has been paying her employee £185 per week rather than the £184.18 net amount that we have given.
She has asked if this matters as far as the inland revenue is concerned and whether she should be showing a payment going back into their accounts by deducting the amount. I have no idea how many weeks or months she has been overpaying.
Our company does do their financial statement etc and am I right in thinking that this will cause problems at year end when their payroll records don't tally up to what they have actually paid.
Thanks
And sorry for all these threads! I will try to cut down
No, keep posting new threads for new topics Noola.
Sounds as though the final salary payment of the year would need to be adjusted by £45.92.
That's a fair chunk out of the employee's weeks wage (24.6%) and as a goodwill gesture I would suggest that the employer gives the employee a loan of the shortfall then deducts that at (say) a pound a week.
If that could be timed to coincide with the next payrise to minimise the effect on the employee that would be best.
For the benefit of all the employee needs to have this explained to them properly and they need to agree to this rather than it simply being imposed.
kind regards,
Shaun.
p.s. the above figures assume that the £185 was the amount received by the employee after PAYE on the £184.18.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks Shaun! I've found out that she has only been paying him more for a few weeks so should we deduct the overpayment from his wage in one go making sure that he is aware of it. It should only come to a few pounds. I'm just waiting to hear back from the client to find out how many weeks it is exactly.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
