Salary mistake (underpaid for 8mo)

P

philipb

Registered User
Messages
91
A family member has been paid at the wrong salary rate by her employer for the past eight months. The difference in the annual rate is approx 11k. This is now being corrected and a refund is promised. We have been trying to work out how much will be given back and how this will be taxed. Any clues?
 
Re: Salary mistake

They have been underpaid for 8 months (completely in the wrong salary bracket).
 
Re: Salary mistake

If the employer has a cumulative tax cert for the employee and they make the full payment outstanding to the employee, the employee should receive the same net amount as if they were paid weekly.

The amount will depend on the employees tax credits, standard rate cut off point and the amount of earnings already received.

I would try to have the employer put it through before year end, otherwise it will affect earnings for next year.
 
You must log in or register to reply here.
Back
Top