Employer has been underpaying my BIK

Hi all. Since I joined "company x" in April 2021 my employer has underpaid my company car BIK amount (along with 16 other employees.) Last week we all received a letter saying they made a mistake and we have been given 6 months to repay for payrolls mistake. For some unfortunate employees, this goes back to 2018!!
Should the employer foot the bill for this? Legally is there anything that states that the company has made the error and should take responsibility?
Your input would be much appreciated.

The employer should not foot the bill for it. All the 16 of you can do is push back very hard on the rate of repayment. Point out it was payroll’s fault, that 6 months is too short due the personal financial commitments each of you have. That you are all very annoyed you were not phoned or asked to a meeting to have all the details of their error explained to you.

I bet the accountants want it all sorted out to keep the liability off the books quickly. So this is where the employer could intervene by paying revenue quickly but giving you more time to pay the company back.

Clamball said:

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I bet the accountants want it all sorted out to keep the liability off the books quickly. So this is where the employer could intervene by paying revenue quickly but giving you more time to pay the company back.

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All fine and dandy until one of the affected people wants to move job with an unpaid tax bill hanging over them.

Hard to believe that all 16 accepted and enjoyed the private use of company vehicles for a prolonged period without it dawning on them that there would be a BIK bill.

T McGibney said:

All fine and dandy until one of the affected people wants to move job with an unpaid tax bill hanging over them.

Hard to believe that all 16 accepted and enjoyed the private use of company vehicles for a prolonged period without it dawning on them that there would be a BIK bill.

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I think it was underpaid to be fair rather than non-existent, so I’d give them a pass.

I wouldn't be sure this is legal - any underpaid tax is typically collected by the Revenue by reducing tax credits/rate bands. An employer can only make deductions from a payroll allowed by law (i.e. taxes, the Payment of Wages Act). I'm not a solicitor but a call to NERA (or a similar agency) may be in order. It may even be worth your while putting some money together so one person can go and see an employment solicitor.

Depends on the contract - some contracts state that any underpayments by the employee / overpayments by the employer can be recouped.

In any case the deductions are lawful, just weren't correct at the time deducted. The liability is the employees and the best thing they can do is discuss the repayment schedule with the employer.