Period That an Employer May Have to Rectify a Payroll Error
People are bound to make mistakes and it is understandable, the problem comes in when the mistake is with the payroll. There are different kinds of mistakes that can be made on the payroll. The payroll error should be rectified the very moment the error is detected. The procedure that should be taken for the fixing of the payroll may take a long time. When an error is made on the payroll and the mistake is noticed, a professional needs to be consulted to advise on how to handle the problem. An employer may choose to consult a professional within the company or have an outsourced help as the problem may be a serious one to handle. An employer is likely to benefit from this.
An example of the commonly made mistakes on the payroll is a miscalculation of hours and many others. The employer is liable for fixing any payroll error that may be realized. The error must, however, be realized within ninety days of the release of the payroll. It is vital to understand how long you have to rectify the payroll mistake as an employer. There are those payroll errors that take longer to fix and those that are easier to fix and all this depends how complicated the issue is. Click here on this page to learn more about how long an employer has to rectify a payroll error click for more info.
An underpayment mistake is one of the examples of payroll errors that an employer may have to fix. There are penalties that an employee is viable to getting and this is possible when the employee pursues a lawsuit on underpayment and wins the lawsuit. During the underpayment period, there are damages that the employee gets and the employer should pay the employee for those damages. The employer may be given two years to ensure that he or she pays the employee. Three years from the realization of an underpayment, the employer should pay the underpaid employee.
The other time when there is a mistake on the payroll is when an employer overpays an employee. This is different from the underpayment as the employee determines when the time the correction is made as it is corrected the moment the employee tells the employer. Collection of an overpayment is done from up to eight weeks when you tell the employer about the overpayment. The employee may have up to six years to correct the overpayment error.