How do overpaid repayments work from employee to employer in regards to taxes?
<p>I get paid hourly 20 dollars an hour. In 1 week I earned roughly $1025.00. However for some reason my company paid be twice in one week so I saw 1025.00*2 hit my bank. This obviously was in error and I want to pay them back; BUT a significant portion of the over-payment pay was taxed. It took roughly ~200.00 from the second payment made to me. So my question is; I should only be obligated to pay back the net over-payment not the actual 1025.00 correct? I never actually received 1025.00 in my bank, I received roughly ~800.00 of the over-payment of 1025.00. So isn't it fair that I only pay back the 800.00?</p>

<p>I can only speak for England and Wales, but I would expect other jurisdictions to be the same:</p>

<p>You are correct: you should only repay the excess cash that you received.  Sorting out other deductions is your employer's problem.</p>

<p>This will be more complicated if this was the last payment in the tax year; speak to your local tax collection office.  You might have to file taxes for the year.</p>

<p>Note that you don't actually need to volunteer the money back at all - you can just wait for your employer to <em>ask</em> for it back.  (In fact, they may prefer to deduct the excess from your next paycheck(s).)</p>

<p><em>In practise</em> (rather than as a legal question), I would talk to your payroll/HR department and ask them the best way to handle this.</p>

employer