Employer claims to have overpaid final check...What to do

[LD1]

This is a little bit different story than I thought from the first reading.

How so?? is that a good or bad "different"

I though I covered all the important details in the first post, but it was getting pleanty long, and I know it is a PITA to read a novel here on TBN.

The letter we got claiming the overpayment has those hour details I mentioned for SVP/FVP pay. And also has the REG hours listed same way.

WE are the ones that had to request the pay stubs. Those came several days later and weren't included in the initial letter.

It was also their falt they didnt turn in the papers till two weeks after her departure. Negligence on their part.

I know if the roles were reversed, and they shorted her last check, and we waited over a year to bring it to their attention, I am sure we would be told to go pound sand, or push sand, or whatever it is you like to do with sand.

 

[teejk]

Other than a gov't employee, I haven't seen unused "sick-time" paid out in 30 years. The sick hours are usually set solely to allow an employer to terminate an employee that views it as additional vacation time and abuses it (one of my employers actually set up a cafeteria plan that included sick days as an option to "purchase" with the funds they made available...any excess funds went into a 401k plan).

So you are stuck with an idiot payroll clerk in your wife's former company that most likely never should have included that in her final check. Ignore it or offer to split the difference for your inconvenience.

 

[joshuabardwell]

How so?? is that a good or bad "different"

When I read your first post, I didn't realize that the dispute had to do with overpayment for hours not worked. I thought they were claiming they didn't owe you for sick/vacation time, and you were saying they did, but they had no actual documentation of the number of hours granted and used, or something like that. It's clearly a screw-up on their part that they submitted the document late and/or with the wrong date, but there's no question that she legitimately owes them the money. The only question is whether, after over a year, they're within their rights to try to demand it back from you. It's clearly a jerk move, especially because it was their mistake in the first place.

 

[LD1]

I thought they were claiming they didn't owe you for sick/vacation time, and you were saying they did, but they had no actual documentation of the number of hours granted and used, or something like that.

7 hours of it is just that. Which is about $100 of the total. She took 67 hours of vacation in 2012 out of 80 total for they year. They say they only owe her for 60 hrs.

Not sure how they do their pro-rating, but it sounds like its by quarter, and since she only worked 3 quarters, they say they only owe 60, yet allowed her to use vacation time not earned, and now want that refunded.

Even so, she still had sick pay left. They could have at least transfered the 7 hours of overpaid vacation to sick pay and only sent us a bill for overpaid hours, but thats right.....no recoreds:mur:

 

[Midniteoyl]

I think its funny that people say 'ignore it, it was their mistake'.. If it was $5k in over payments, would you say the same? $50k? $500k?

LD1, you need to look up the state laws in Ohio about 'unjust enrichment'. There are time limits, money limits, etc. You also need to think about IF you do pay it back, how much you need to withhold for taxes you paid due to the overpayment and the CPA's fee for reconfiguring and refiling your taxes (Wink, wink).. I would think it would be fairly easy to get rid of this problem. Just please do not ignore it - which it looks like you are not anyways.

 

[NorTracNY]

I'll be surprised if they will produce an old employee handbook. The handbook were I work is not even readable by the employees. It's all online, but all the details are not viewable. You have to ask HR and they will just verbally tell you about what is in one of those sections!

 

[SPIKER]

...
LD1, you need to look up the state laws in Ohio about 'unjust enrichment'. There are time limits, money limits, etc. You also need to think about IF you do pay it back, how much you need to withhold for taxes you paid due to the overpayment and the CPA's fee for reconfiguring and refiling your taxes (Wink, wink).. ....

LD1 that may be a good point too tell them you will need to speak with your CPA and tax people to see what costs will be involved to file amended taxes from last year and maybe this year as it will effect your taxes owed and paid. Unfortunately you are dealing with the Bank (where she worked) so they already have employees setting there getting paid so if they think they can get back 500 bucks from you they will spend 1500 in employee time and company expense to get the 500 back... Sad way of looking at it but if you let them know any costs you incur to get the taxes CPA and or tax accountant to file amended taxes then you will deduct those amounts from the amount owed & they MAY (but not likely) say forget it...

Any luck on those jobs I sent down to ya? I'm back to looking now as I dropped a math class and put me UNDER full time student so have to apply to two per week...

Mark

 

[teejk]

Cash basis tax payer. Most likely no amended tax returns required unless the employer wants to amend the W-2 for the year in question (and I'm not sure they can...they paid it, she received it and reported it in the year received).

If your wife was the only one affected by a mistake made by a payroll clerk, I doubt they will chase it. lf they go to collection you have rights to dispute it. Since it seems to be around vacation pay and not unused sick pay, they will have to produce the written policy. If they do that, then if you owe it you owe it. If not then take them to the mat. In 99.9% of employment issues, the employee enters the batter's box with a 3-0 count.

 

[LD1]

Any luck on those jobs I sent down to ya? I'm back to looking now as I dropped a math class and put me UNDER full time student so have to apply to two per week...

Mark

No, never heard anything. I'll keep my eye out for electrical jobs. Seems last I checked indeed, there were a few over the last few days that wanted robotic programming and PLC stuff. Dont remember where they were, but if I see any up north, I'll let you know.

You also need to think about IF you do pay it back, how much you need to withhold for taxes you paid due to the overpayment and the CPA's fee for reconfiguring and refiling your taxes (Wink, wink).. I would think it would be fairly easy to get rid of this problem. Just please do not ignore it - which it looks like you are not anyways.

Thats another way to look at it. But doubtful an amended return is needed. As someone else mentioned, the money was paid in 2012, therefore income taxes on it in 2012. IF paid back, likely would just have to deduct that amount from this years taxes, since this is the year we would be paying...


I did talk to an attorney friend. He just simply advised that we write a letter stating we disagree with their findings, and according to our records we were paid correctly. He said they likely wouldnt push it to their attorney/court over $500. But if they did, the next letter we get from them would likely be from their legal dept/attorney. And if it goes that far, to send another letter stating we still disagree but offer to pay half just to make it go away.

 

[milkman636]

I like the sound of your attorney friend's advice. We may have a winner here folks!!