Revenue eBrief No. 080/21
Recoupment of Overpayments of Salary by an Employer from an Employee
Tax and Duty Manual Part 42-04-70 – Recoupment of Overpayments of Salary by an Employer from an Employee – has been amended to provide updated examples for recoupment of ‘in-year’ and ‘out of year’ salary overpayments and to incorporate updates effective from 1 January 2019 concerning realtime PAYE data.
In 2019 Megan was overpaid by a total of €1,200. This was discovered in May 2020.
An instalment arrangement to recoup the overpayment was agreed between Megan and her employer. She will repay €40.00 per week for the remainder of the year 2020 and thereafter until the total overpayment has been repaid.
As the overpayment occurred in a previous year, the out of year recoupment method must be used i.e. gross overpayment must be collected from her net pay