Would this make you uncomfortable?

[PeachyDoodle]

DH and I are on opposite sides of this issue, so I just wondered what others' take would be.

 

Some background: DH works in sales for a large telecom corporation. His specialty is healthcare accounts. He is the only rep in his area who can sell to healthcare providers, but he is ONLY allowed to sell to healthcare providers. Other reps have specialties as well, but some are general reps who can sell anywhere, except for those specialties that are protected (e.g, healthcare). Because of the restrictions, reps (including DH) sometimes come across opportunities (via referrals or whatever) that they can't sell, and they pass these off to the appropriate colleague. The general rule is that any contract sold within a specialty stays with that specialty rep, but on occasion, reps agree to split commission with the referring rep. There is a protocol for doing this via the corporate payroll department.

 

DH's colleague (let's call him C) passed off a healthcare opportunity to DH, which DH sold. The commission technically belonged 100% to DH because this is in his specialty. However, DH's manager and C's manager agreed to split the commission 50/50 (managers, of course, are judged by their teams' sales figures, so this sometimes happens; it's part of the game). All of the appropriate paperwork was filled out, signed off on, and submitted to HR. Someone in payroll made a mistake, however, and credited 100% of the commission to DH.

 

C is very upset and has been hounding DH incessantly. (There have been ongoing issues with C since he joined the company a few months ago. He is getting a reputation for making a pest of himself, sending copious irrelevant texts and emails, leaving 3-minute rambling voicemails, etc. -- not just to DH but to their other co-workers as well.) He has accused DH of conspiring to "take" his half of the commission (impossible, since both managers would have had to have signed off on a change and payroll is processed in another state; DH doesn't even know anyone in payroll). Payroll will fix the mistake (take 50% of the commission out of DH's check and give it to C), but it will be at least one pay period before that happens. C is complaining that he needs the money now in order to have his car repaired and is bugging the heck out of everyone involved. C's manager and DH's manager have told DH to cut C a check for his half from our personal account just to shut him up.

 

Would you be comfortable paying a co-worker out of your personal bank account in order to correct the company's payroll mistake?

[QueenCat]

NO! Let the manager pay him if he feels that strongly about it. If your dh pays him, your dh gets the tax hit for the full amount. Or are you trusting the guy to pay your dh back after he gets paid?

[Jean in Newcastle]

If your dh cuts him a check, who is Payroll paying?  I would respectfully tell his manager no, that there is too great a danger of a further mix-up down the road.  I would then tell C to take it to HR - rinse and repeat.  

[KungFuPanda]

Absolutely not. Official channels only; especially with a pest.

[PeachyDoodle]

To clarify: Paperwork to correct the mistake hasn't been filed. I don't know what the chance is that payroll will figure it out and correct it on their own. I would assume not good.

 

Just in case that changes anything for anybody. :p

 

ETA: Payday was today.

[Mrs Mungo]

Absolutely not because if it IS fixed through payroll, then your dh is unlikely to get the money back.

[Garga]

No! No. Pest can go and pest the appropriate channels. You DH did nothing wrong and this will make a huge tax mess later. Let payroll fix it.

[Joanne]

No. The co sequences of this guy's reputation and behavior are that you do not feel comfortable doing so.

[Mrs Mungo]

You DH did nothing wrong and this will make a huge tax mess later. Let payroll fix it.

 

That too. Does he really want to pay taxes on money he doesn't have? 

[zoobie]

Heck no! If the manager feels that strongly, it should be cut from company funds. That's whacked. It needs to be corrected by payroll for tax reasons.

[MrsMommy]

Just say no!

[Plink]

No way. Payroll needs to have an accurate record of exactly who they paid what. The info goes to fica, social security, etc. There is no reason for a manager to suggest a person-to-person transfer of money. It will just complicate things down the line. (And I'm pretty sure that it is illegal for them to suggest that your DH do so.)

 

That manager is an idiot and a wimp. Ignore him. Payroll made the problem, payroll can fix the problem.

 

Sorry your DH got caught up in this mess.

[Word Nerd]

 

Would you be comfortable paying a co-worker out of your personal bank account in order to correct the company's payroll mistake?

 

No, I would not. This is not your DH's mistake, nor is it his responsibility to correct it. C or the manager should take the matter directly to payroll if the solution they decided on will not work. It would create more problems for them, and it's possible that DH wouldn't even get his money back.

 

Surely your DH isn't seriously considering agreeing to this? I can't believe the managers would even suggest it.

[Lara in Colo]

Nope, because when payroll gets it fixed, then DH takes a double hit.

 

[Catwoman]

No.

 

Why would anyone ever do that???

[PinkyandtheBrains.]

Official channels only. Too many ways for this to bite you later.

[QueenCat]

Your husband should contact payroll, in writing, to let them know that he was paid too much, and that the forms were filed. The managers should also contact payroll. If your dh doesn't contact payroll himself, he could later be accused of theft by keeping money that wasn't his but IT NEEDS TO BE DONE THROUGH OFFICIAL CHANNELS.

[Word Nerd]

Your husband should contact payroll, in writing, to let them know that he was paid too much, and that the forms were filed. The managers should also contact payroll. If your dh doesn't contact payroll himself, he could later be accused of theft by keeping money that wasn't his but IT NEEDS TO BE DONE THROUGH OFFICIAL CHANNELS.

 

He's already done that. The issue is that the other employee isn't happy with how payroll is resolving the issue.

[NorthwestMom]

He's already done that. The issue is that the other employee isn't happy with how payroll is resolving the issue.

 

That is unfortunate but NOT YOUR PROBLEM.

[Tammi K]

Your taxes are based on what Payroll tells the Federal Government. I think this is an area where you don't want to mess with someone else's mistake.  Plan to put aside the money so you don't spend it now and then will have it available when payroll deducts it from you Dh's paycheck.  But, in the meantime, let payroll figure out the solution to the problem.

[Forget-Me-Not]

No, no, no, a thousand times NO. Let Payroll handle it with a paper trail.

[QueenCat]

He's already done that. The issue is that the other employee isn't happy with how payroll is resolving the issue.

 

I missed that........... glad he's done that.

[PeachyDoodle]

Your husband should contact payroll, in writing, to let them know that he was paid too much, and that the forms were filed. The managers should also contact payroll. If your dh doesn't contact payroll himself, he could later be accused of theft by keeping money that wasn't his but IT NEEDS TO BE DONE THROUGH OFFICIAL CHANNELS.

 

I hadn't even thought about him being liable for taking too much money. Good point.

 

He's already done that. The issue is that the other employee isn't happy with how payroll is resolving the issue.

 

Actually, payroll is not yet aware of the mistake, to my knowledge. Today was payday so I think all this unfolded throughout the afternoon. DH's team was in the middle of a project and hasn't had a chance to resolve it yet. HOWEVER, all four people involved do acknowledge there was a mistake made, and the company will most certainly fix the mistake once payroll is notified. The issue is that the co-worker does not want to wait on payroll.

 

The amount of money in question is not huge, but big enough, IYKWIM.

[TheApprentice]

Uhh, No. It is not your husband's responsibility to shut "C" up.

[nd293]

No. This must be corrected through official channels. If it's that important to everyone, they can have payroll do an emergency corrections.

[JustEm]

I hadn't even thought about him being liable for taking too much money. Good point.

 

 

Actually, payroll is not yet aware of the mistake, to my knowledge. Today was payday so I think all this unfolded throughout the afternoon. DH's team was in the middle of a project and hasn't had a chance to resolve it yet. HOWEVER, all four people involved do acknowledge there was a mistake made, and the company will most certainly fix the mistake once payroll is notified. The issue is that the co-worker does not want to wait on payroll.

 

The amount of money in question is not huge, but big enough, IYKWIM.

 

Unfortunately he has too.  That is how life works.  The company your dh and C work for pays people not your dh.  If they mess it up it is their responsibility to fix it financially not your dh's.  C needs to grow up and your dh needs to make it clear that C isn't getting any money from him.

[Moxie]

Most companies have a way to push through a quick check. The managers need to lean on payroll and make that happen.

[poppy]

I think the guy has a  totally legitimate beef.  But obviously it's not your husband's fault, or problem. The manager is to blame, sounds like.

[PeachyDoodle]

I think the guy has a  totally legitimate beef.  But obviously it's not your husband's fault, or problem. The manager is to blame, sounds like.

 

Oh, I totally agree. We've been on the other end of commission screw-ups, and it's a real PITA. I feel for the guy.

[Word Nerd]

I hadn't even thought about him being liable for taking too much money. Good point.

 

 

Actually, payroll is not yet aware of the mistake, to my knowledge. Today was payday so I think all this unfolded throughout the afternoon. DH's team was in the middle of a project and hasn't had a chance to resolve it yet. HOWEVER, all four people involved do acknowledge there was a mistake made, and the company will most certainly fix the mistake once payroll is notified. The issue is that the co-worker does not want to wait on payroll.

 

The amount of money in question is not huge, but big enough, IYKWIM.

 

Ah. I took "Payroll will fix the mistake (take 50% of the commission out of DH's check and give it to C), but it will be at least one pay period before that happens.In that case, payroll could cut him a check" to mean that they had already been informed. One of the managers needs to contact payroll ASAP and see how they want to handle it. They may be able to cut C a check immediately—but in any case your DH should not be the one writing him a check.

[Cera]

Absolutely not.  Set the money aside and wait for the managers to notify payroll and the problem to be fixed through official channels.

[Annie G]

Nope. It wasn't dh's fault, so the other guy is hassling the wrong person. I feel for the guy but it has to go through proper channels. You need that paper trail so your W-2 is correct next year.  

 

 

[ScoutTN]

Yes, that would make me very uncomfortable. Payroll made an error; Payroll will correct the error. 

Taxes and other withholding issues are tricky. Let the paperwork people fix it.

[katilac]

Absolutely not. Have dh tell everyone concerned that his tax advisors will not allow it  :lol:

[ssavings]

DH works in sales. He has both paid out directly to coworkers, and been paid directly by coworkers. He has only done this in situations where, for whatever reason, the company is unable to advance the deprived party their portion prior to the next payday. (To note, we're paid quarterly commissions. Three months can be a long time for people to wait for their money.)

Edited to add: Of course, if the sales your husband works in comes with a risk of commissions being charged back, as some companies do, that'd be a huge risk. That'd make me nervous. 

[PeachyDoodle]

DH works in sales. He has both paid out directly to coworkers, and been paid directly by coworkers. He has only done this in situations where, for whatever reason, the company is unable to advance the deprived party their portion prior to the next payday. (To note, we're paid quarterly commissions. Three months can be a long time for people to wait for their money.)

 

Edited to add: Of course, if the sales your husband works in comes with a risk of commissions being charged back, as some companies do, that'd be a huge risk. That'd make me nervous. 

 

Hm, the chargeback. Another issue I hadn't considered. Yes, it's possible that it could be charged back, although that doesn't happen frequently. Excellent point, thank you.

[mom2scouts]

No.  Let payroll figure it out.

[katilac]

DH works in sales. He has both paid out directly to coworkers, and been paid directly by coworkers. He has only done this in situations where, for whatever reason, the company is unable to advance the deprived party their portion prior to the next payday. (To note, we're paid quarterly commissions. Three months can be a long time for people to wait for their money.)

 

Edited to add: Of course, if the sales your husband works in comes with a risk of commissions being charged back, as some companies do, that'd be a huge risk. That'd make me nervous. 

 

The company is never unable to pay the money. They may be unwilling, but they are not unable.  Employees should never be expected to informally pay out money that way. 

[Tap]

Do not pay the guy. If he needs a commission *that he shouldn't have counted on* to pay a bill that badly, I am guessing that his finances are in a bad place and that it will take a long time, if ever to get paid back from the guy.

 

 

What if he quits or gets fired....do you really think you will see that money again? I don't.

[reign]

Another vote for NO! Not a good idea.

[Alessandra]

Voting NO too.

 

Often in tax situations, certain deductions have thresholds. You don't want to go over those on reported income, if you are giving that income to someone else. Other thresholds come with college aid, medical, etc.

[PeachyDoodle]

After all your thoughtful responses, I think I have DH convinced that this is a really, really bad idea. Actually, I'm not sure that he ever thought it was a GOOD idea; he just wanted these guys off his back. We drafted an email for him to send this morning; he wants to get some feedback from his mentor (who's not involved in the situation) first. He'll also be contacting his HR rep to report the overpayment and see what steps he needs to take. At least it will be on record that he reported that he was overpaid.

 

It's not at all unusual for reps in his office to thank each other for referrals with small gifts or lunch out. It's a schmooz-y kind of place like that. At any rate, to me this is a much different situation than buying your buddy a thank-you lunch. If payroll had never been involved, it would be one thing. But if there were to be an internal audit that caught the mistake, DH is the one whose neck would be on the line.

 

As I said, I feel for the guy, commission mistakes are a headache, but this is not DH's mistake to fix. The full commission should have belonged to him anyway, but he didn't throw a hissy fit over sharing it, even though he would have been well within his rights to do so. Fifty percent is better than nothing, even if it's late -- right?

[Lanny]

No. Your DH did not make the mistake. Someone in the company made the mistake. The company can fix it. I wouldn't want the person who is owed the $ to have my personal bank account information, which he would have, if your DH wrote a check to him.