Jump to content

Employer overpaid and sent me to collections?


frontline
 Share

Recommended Posts

Hello,

This is my first post at the forums, but probably won't be my last as this looks like a great resource. In the last couple months, I terminated employment with a company and gave them plenty of notice - more than 2 weeks. They then overpaid me for one full pay cycle of 2 weeks via direct deposit. I then received a letter stating that I would be contacted by the HR directly to discuss the matter, but never received any communication. A few weeks later I receive a letter stating that the matter was being sent to collections. This just doesn't seen right. I don't have a problem paying it back, but it seems I haven't been offered the chance before possible damaging my credit. I have not contacted the employer, I figured I should get some advice before doing anything.

What would be the best thing to do here? Is it a good idea to try the method of getting proof in writing that it will not negatively affect my credit and then settle? I appreciate any feedback.

Link to comment
Share on other sites

This is a toughy. If it were me, and I left the company on good terms, I'd call up the HR department and ask them to recall it from collections and you'll make it right. There are all kinds of complications here...assuming the company included this in their payroll calculations, then they've already paid employer taxes and such on this money. They've probably got more people to "get money back from" than just you.

On the other hand, if someone has a bad taste in their mouth over you leaving, than you may have to deal with the CA. If you do settle this with other than the original employer, make sure that all of the appropirate tax reporting gets corrected. You don't want to pay taxes on this...

Link to comment
Share on other sites

Have you been contacted by a CA? Is it showing on your credit report? If the answer to either of these is yes then send a DV letter to the CA for starters.

Also, is this regular payroll or a loan/advancement that should have been deducted from your last paycheck?

Make sure you keep bank statements etc. showing the direct deposits from as long a time period as you have them.(just so you have records showing they did it on their own)

If this was just regular pay then the employer does not have the right to collect this from you, and you are not required to pay it back. If you want to pay it back then how nice for you, but if you don't then enjoy the extra cash!

There may be some state law where your at that contradicts me, but I don't know where your at so I can't say.But, I am a Payroll Professional and I know here in GA if I overpay you - good for you - bad for me!

Good Luck!

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.