This guide explains how to handle the correction and recovery of overpaid salary to an employee in Netvisor. Recovery and unjust enrichment apply in situations where too much salary has been paid. The guide describes correcting an overpayment in the next Payroll by offsetting it as a deduction from the gross salary, recovery as gross recovery and unjust enrichment on the earning payment report, the employer's separate notification for the payment month targeted by the recovery, as well as correcting errors in fringe benefits.

An overpayment can be corrected by offsetting the amount of the overpayment on the employee's next payslip as a deduction from the gross salary. Offsetting should be done using the income type that is being paid on the payslip, as the sum of the income type cannot be reported as negative. Offsetting can only be used if the overpayment can be fully offset in the next Payroll. Offsetting should not be used if the payroll information for the wrong month would affect the employee's benefits, such as daily allowance.

Example: An employee was paid 200 euros too much evening allowance in February. The error is corrected on the March payslip by deducting the 200 euro overpayment made in February from the March evening allowance (280 euros). After offsetting, 80 euros of evening allowance remains to be paid for March.

February payslip:

February earning payment report for income type 206:

Correct the overpayment as follows:

March earning payment report for income type 206, i.e., 280 euros - 200 euros = 80 euros:

An overpayment received by the employee can be recovered on a future payslip, either as a gross or net recovery. This help guide addresses gross recovery, as gross recovery can be used in all situations, including correcting an overpayment recovered within the same year.

When an overpayment is noticed, the earning payment report is corrected, and the portion of the overpayment is reported as unjust enrichment. Then, when the overpayment is deducted on a future payslip or the employee returns the money to the employer, it is reported on the earning payment report as a return. The unjust enrichment and return related to the overpayment must always be reported as a pair to ensure the correction is targeted correctly for the users of the Income Register.

In gross recovery, the gross amount of the overpayment is deducted from the salary to be paid to the employee, without considering the withholding on it. The pension and unemployment insurance contribution related to the overpayment are also considered.

The excess withholding is considered only in the employee's final taxation. Alternatively, the employee can apply for a revised tax card after the correction of the overpayment (once the Income Register has processed the earning payment report), where the excess withholding will be considered in the calculation of the new tax card.

Example:

An employee was paid 900 euros too much monthly salary in February. The monthly salary should have been 1900 euros instead of 2800 euros, and the overpayment was noticed after the March payroll. The overpayment is deducted on the next, i.e., April payslip. The normal monthly salary for April is 2800 euros, which is paid at the same time.

Proceed as follows:

Please note that the unjust enrichment also affects the separate notification for the payment month of the original payslip. Please also make a replacement separate notification for the changed employer's health insurance contribution.

You can access the employer's separate notifications help guide here.

April payslip and recovery:

Set up the recovery on the payslip as follows:

April payslip after correcting the basis for calculating the withholding:

April earning payment report for income type 201:

On the April separate notification, the basis for calculating the employer's health insurance contribution is only the corrected monthly salary amount (1900 euros). The correction of the employer's health insurance contribution for the overpayment has already been considered in the corrected February separate notification, which is why the April employer's health insurance contribution must be reported from the normal total salary for April (2800 euros). The basis for calculating the separate notification cannot be edited before sending the notification, so the notification must first be created and sent with the amounts on the payslip. When the separate notification is in the Income Register status, a replacement notification can be created with a larger amount (according to the normal total salary).

Correct the separate notification for the recovery month as follows:

Fringe benefits are not paid to the employee in cash, so the method of reporting unjust enrichment and return is not used to correct errors in them. It is not unjust enrichment, but a notification error, as the fringe benefit has been available to the recipient regardless of whether it has been reported. The fringe benefit is considered income for the month in which it was available to the employee.

Excessively reported or unreported fringe benefits are corrected for the target month, and employer's contribution corrections are made on the next payslip.

The use of the return function is only possible if the unjust enrichment was paid on a Netvisor payslip. This is because, in the additional information for the return, the payslip and salary type row where the unjust pay was originally paid are selected from a dropdown menu. If the system has changed in between, you can make a notification of the return and unjust enrichment in the Income Register's electronic service.

Fringe benefits cannot be corrected by return. According to the Income Register's instructions, correct the earning payment report for the month in question by providing a replacement notification and report the actual value of the fringe benefit. In Payroll, you can create an additional payslip for the desired period as negative, which can correct payroll information for Netvisor's reporting and cumulative earnings on the payslip, but the earning payment report for this payslip cannot be sent to the Income Register, and it is marked as processed manually.

Recovery and unjust enrichment are used in situations where the employee has been paid too much salary and this is recovered in the next payroll.

The information on the payslip can be corrected either with an additional payslip or by editing the original payslip. Editing the original payslip requires the earning payment report to be cancelled. The most important thing in the correction is that, as a result, the cumulative earnings on the payslip and reporting correspond to the information reported to the Income Register.

You can find options for correcting a payslip in a separate help article: Correcting a payslip

Negative income types can only be reported to the Income Register in certain situations and only for specific income types. We recommend familiarising yourself with the Income Register's instructions regarding negative income types. If necessary, the earning payment report for the correction payslip can be marked as sent, and the information on the original notification can be corrected according to the Income Register's instructions, either with a replacement notification or by cancellation. The Income Register provides instructions on when a replacement notification is used and when cancellation is used.

In Netvisor, the correction payslip can be marked as paid, and the employer's contribution and withholding on the payslip will affect the separate notification and employer's contributions for the month to which the salary payment date is allocated.

Can I deduct from the employee's salary a train ticket paid with the employer's card? Is this recovery and unjust enrichment?

Recovery and unjust enrichment cannot be applied in this situation, as it is not a recovery of actual salary. If this is a deduction for a tax-free cost reimbursement, to correct and deduct the net salary you can use, for example, a salary type Other deduction, e.g., invoice from the deductions group.

Within what time must unjust enrichment and recovery be reported to the Income Register?
Report unjust enrichment as soon as possible, and at the latest within 1 month of detecting the error.

Make the notification of recovery when the payment has actually been recovered from the income earner. The deadline is at the latest on the 5th calendar day from the day when the necessary information (recovery date, amount and payer) has been received.

If necessary, more detailed instructions and additional information can be obtained from the Income Register.

Keywords: Netvisor, recovery, overpayment, offsetting, gross recovery, unjust enrichment, earning payment report, employer's separate notification, fringe benefit, withholding, employer's health insurance contribution, Income Register

*This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.
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