I was overpaid PPL by my employer to the tune of $2,500. I alerted them and Centrelink the moment I noticed (most of it was paid in one huge amount months after I returned to work so the mistake was apparent). Now my employer wants me to pay back the gross amount despite around $1,300 going in tax due to being paid multiple payments at once on top of my regular wage.
According to Centrelink and the ATO I only need to repay the net amount and my employer can claim the PAYG back through the W1 and W2 labels. My employer claims they can't do this.
Has anyone been in a similar situation? I've contacted my union, the ATO and Centrelink and I've written a formal letter to the payroll officer stating that I will pay back the net amount (I have it set aside ready) and they must contact the ATO about the PAYG tax. Should I request a individual ruling from the ATO? Contact the taxation ombudsman? Any advice would be appreciated.
I cannot afford to pay my employer $1,300 even if I do get it back next tax time. That's nearly a year away and as a single income family we're not rolling in cash. Even spreading the payments out would cause us financial hardship.