Recovery
Money taken back from an employee’s later pay because they were paid too much or owe the company.
A recovery is booked against an employee, with a reason, and deducted from a later payroll. It is the tidy way to fix an overpayment: tracked, explained and agreed, instead of asking for a transfer outside payroll.
Large recoveries are often spread over several months in instalments the employee agrees to. If the person leaves before the balance is cleared, what remains is netted in their final settlement.
Related
General information, not tax or legal advice.
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