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If the amount owed is a legitimate business expense it would not have to be paid by the employee, nor would it be written off. It's simply a business expense, that (hopefully) has been budgeted for. As for any other money owed by an employee, that's why companies like ours pay us a week late. In other words, i get paid Friday 2/7 for the two weeks 1/20-1/32. If I leave tomorrow and owe for an overpayment, damage to company property, or anything else, it would be taken out of my last paycheck. Of course, I would also be paid 100% for any unused PTO, and 50% for any unused sick leave.
That is something else that I discovered. My last corporate job before this one longer than 1 year was in California. California is one of a handful of states thatMUST payALL remaining PTO to the departed employee. In most states, the employer is free to pay what it wants. This past employer only paid me for 5 days even though I had earned 9. Your state may be in the handful with good laws or perhaps your employer is fair/generous?
I suspect it all depends on the company, the employee and the details of the case. My company laid off an employee who had just bought an expensive computer through the company's buy-now-pay-later plan. He was supposed to return the next day to bring the computer back but he never did -- and the company didnt pursue getting back the computer or asking him for payment.
Stuff like that catches up to people who do that. He can never use that company as a reference on a resume. People move around in jobs and some former co-worker will remember him as the guy who ripped off a computer from a former employer. As they say, your reputation is everything; don't screw it up.
Over 20 years ago, a company that I worked for OVERPAID me an extra month of payroll (maybe 1 2-week cycle, don’t remember). All they did was ASK to get the $ back, but did not pursue it any further than that.
hmm...how did you know they didn't pursue it further; unless you didn't return the money that didn't belong to you?
The cardholder agreement (which the employee agrees to by accepting and using the card) binds the employee to the liability for paying the amount on a corporate card.
This is often the surprise whammy employees who didn't read what they were signing run up against.
I didn’t have an owed balance when I quit my job in October, but I very well could have. What happens when an employee has a balance of $500, $1,000 (these would not be personal expenses). Is the employee generally financially responsible for the balance or does the company write it off?
The short answer is yes. A friend of mine left a company, and forgot about a subscription that was still on his corporate CC. Even though he canceled the CC card when he resigned, the vendor renewed it, and submitted it to the corporate CC. He got a statement in the mail with a balance due and this was months after he resigned. He told the CC company he didn't work there any longer and canceled the card, and that didn't seem to matter he was still responsible for the payment. When he was employed there, he would file the CC bill as an expense and they would reimburse him to pay the corporate card before any interest charges.
If it’s a valid expense incurred while employed there you would complete a final expense report.
Or they would do it on your behalf. If there was no owed balance when you left, why would there be one now?
As I just posted about, if you had an automated renewal subscription you forgot about, it can be charged to the CC. Even though my friend canceled the corporate CC when he left with a zero balance, they approved a charge anyway.
This is often the surprise whammy employees who didn't read what they were signing run up against.
IF its a CORPORATE CARD then its the COMPANY itself that is accountable per the Corporate card terms of agreement.
A business I worked for Could NOT just randomly Issue a Personal card to an employee, or Pretend to be that person when applying for the credit card. Instead What they were legally required to do is make that person an authorized signor for charges which were placed on the Corporate Credit Statement.
Our company did a weekly audit of charges, (Nice with online viewing) so if they saw that so and so put in their resignation or was being placed on the chopping block, they immediately Pulled that name off the signors list and Viola! When Joe Schmoe went to use the card- it declined. In todays quick charge system, its rare that a cost would be delayed by a day or two in hitting the statement.
With the current feature on cards of locking them from transactions or limiting the value per day of usage, I find it less likely that the employee could get away with a spending spree that went against company expenses.
As I just posted about, if you had an automated renewal subscription you forgot about, it can be charged to the CC. Even though my friend canceled the corporate CC when he left with a zero balance, they approved a charge anyway.
Assuming it’s business-related then the company can handle that after the ex-employee makes them aware.
There was a scandal over our mayor using his county-issued credit card for personal use. Repeatedly. It included nearly $1000 for a single night at a hostess bar and a big ticket toy or two.
He was arrested and charged with a felony. It went to court, and, IIRC, they cut a deal just before his term ended. I hear he protected his pension; I wouldn't be surprised if he gets reelected some day. Small town politics.
I would guess that your mileage would vary, depending on the amount owed, what it was for, company policies, who knew about it, and if they like you.
I didn’t have an owed balance when I quit my job in October, but I very well could have. What happens when an employee has a balance of $500, $1,000 (these would not be personal expenses). Is the employee generally financially responsible for the balance or does the company write it off?
It's my experience that you are not to charge personal expenses on the card. IE, your Starbucks on the way to the office is different than your Starbucks while you're on a business trip.
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