pay is wrong , please help me

willhelp · PayPerShop Newbie Joined: 28 Sep 2008 Posts: 1

My friend works term time only. During certain school holidays he gets no pay. Usally they allow the tax refund to happen but this time they have stop it. It is the way that they have stop it that I can not get my head around. Where I work we also have stop tax refunds but we have never made a reduction of their total taxable pay todate with a payment that is not due, we have always had a system code set up that will bring the net pay to nil but this would not show on their payslip and their figures are not adjusted. One of my friend s concern is that the company life insurance is based on the p60 figures of the previous year and now they have reduced this figure it will now mean that next years p60 figure will reduce by the said amount.
I feel that they have made an error in the way they have stop his tax refund. The tax is right but its the way that they have done it??
Below I will show you the figures from month 5 pay period
Month 5
Pay �1139.61
total taxable pay �4428.62
total tax paid � 451.80
In month 6
Pay �-154.74
C/F � 37.14
gross pay �-117.14

tax refund �117.14
net pay nil

total pay is month 6 �4273.88
total tax paid in month 6 �334.20

the difference between month 5 and 6 total tax paid is �-154.74
the difference between month 5 and 6 tax paid is �-117.60
then in month 7 figure of �37.14 was b/f as a deduction.
hope this makes sense, my questions are as follows
If in month 6 he was due no money, so how can they put through a negative pay of �154.74 and a postive payment of �37.14 to nil out his tax refund. WHERE did they amounts come from and if these are amounts that they have created to nil out the refund how can they allow it to adjust his figures when no monies were due or owned. Also the positive payment of �37.14 as a c/f how can they claim that money back as a deduction in month 7 when this money again is not due or owned.
Can someone please explain to me how they can create these figures up without any real monies being due or owned.
If you need more information then please ask, I really wouild like to help him because I think the company is messing his pay up

paypershop · Site Admin Joined: 16 Feb 2004 Posts: 20

I note that you have posted this question in three different places. I have therefore deleted the other two postings.
_________________
Greetings from Ian Congreave

PayPerShop provides a free weekly UK, US and Worldwide payroll news service - http://www.paypershop.com/latestnews.html

Sue Levett · PayPerShop Newbie Joined: 10 Apr 2006 Posts: 10

As far as I am aware refunds should only be withheld if an employee is involved in a Trade Dispute and once they have returned to work the refund should then be paid. I know of no other official reason to withhold a refund.

danhutson80 · Posted: Wed Oct 15, 2008 2:58 pm Post subject:

What they're doing seems very wrong to me. I would have thought they can put an employee on dormant for periods where there is no work to pay or just pay the tax rebate.