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Key Tips to Avoiding Payroll Overpayments

Overpayment of wages can be a difficult issue to deal with, not least because it places financial strain on both employer and employee. Such instances can be notoriously hard to correct historically and even when a professional solution is found it can still leave human headaches in place. Here, we look at 3 areas in which businesses can apply practical improvements to the payroll process and avoid overpayment issues before they occur.

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Help! I’ve Just Overpaid An Employee!

Many of us have enjoyed the classic board game Monopoly, and we’ve most likely received the “Bank error in your favour, collect £200” card.

In real life though, it doesn’t quite work like that.

Overpayments can and do happen, but the recipient isn’t legally entitled to pocket the money, unlike the player in a game of Monopoly!

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Overpayment to Former Employees

Overpayment to employees, in particular former employees, is more common than you think. It can range from a simple payroll error such as miscalculating a payment of wages and or bonus/commission to seeking recovery of holiday pay, benefits such as a car allowance or train season ticket and even training fees from a former employee.

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Case Study - Salary Overpayment Collected from Former Employee

Recovering overpayments to former employees can be an easy process that need not result in large legal costs.

To illustrate the options a company may have, let us consider a recent case.
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