When you return to work after leave, you may receive a notification that you owe your employer funds for a payment you received during your leave.
Why might you owe your employer a payment from when you were on leave?
You could owe for an excess employer payment because:
1. Your leave dates might have changed and your total leave benefits might have been updated.
For example, let’s say your original leave plan was to take 10 weeks. At the end of your leave, you decided to return early and you only take 9 weeks of leave. Depending on when you update your leave plan with the new dates, your team may have already run payroll. This would mean you owe your employer a payment to reconcile the date change.
2. Your employer might have chosen to give you upfront pay to provide a stronger financial safety net while you waited for your claims payments to come in.
3. You may have submitted your leave after it had already started and previous payroll was not correctly deducted to account for your claim benefits.
4. You may have received more in benefits than we estimated. If you completed a benefit verification and it turns out you received more in benefits, your employer needs to take these into account so that you’re not being overpaid.
What should you do if you see that you owe money to your employer?
Your employer will reach out directly to you to coordinate repayment.
Cocoon cannot provide tax, accounting or legal advice. There may be circumstances, including recoupment of overpayment across calendar years, that could have tax implications. Your tax professional can provide more tailored guidance regarding your specific situation.
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