Help ?

[Ruskii]

Hi Everyone, Just wondering if you can help me with a small problem, it came to my attention today that recently (well over the past two months) a member of staff had claimed extra hours outside of her contract hours and has been paid them, when in effect the extra hours that she was claiming were her normal contract hours ! Now obviously the company is looking to claim back the amount that she has been overpaid.

I've drawn up a spreadsheet showing week by week over the last 8 weeks all the shifts totalling with the amount that is due back, but the employee is concerned that she has paid tax on this extra money and is worried that she wont get it back, now with the company taking back the money, logic says to be me it will be a pre tax deduction, and because Income Tax is done on a Year to Date basis, does anyone know how I would show this in a spreadsheet format in a basic way so I could explain it to her and she would understand ? Any Ideas or suggestions would be great :D If I haven't explained myself properly then please ask :)

Thanks :)

[GILL]

You will need to explain to her that PAYE is usually cumulative (assuming she is not on a week1/mth1 basis!)

You should be able to show her that the PAYE will balance out by showing the amounts actually paid in the spread sheet (including the week/month the overpayment was deducted) and how it would have worked had she been paid correctly.

However, you need to remember that as NI is non-cumulative you may need to make manual adjustments for this.

Gill