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 several kinds of payroll errors that can be made. The payroll error should be rectified the very moment the error is detected. This can, however, be a long process. When a payroll error is noticed, that is the moment that an employer should take to start fixing the problem and consulting a professional on the matter is ideal. An employer must get a professional’s help and this may be possible if the company has a professional to be consulted and in case the company has none then the employer may consult a professional from the outside of the company. This will prove to be beneficial to the employer.
Among the common mistakes that can be made on the payroll are when the number of hours is miscalculated and any other reasons. he payroll errors are bound to happen and what an employer out to do is get a solution for the problem. The mistake on the payroll must be within ninety days of realization for rectifying to be done. It is important to know how long an employer has to fix a payroll error. Ever payroll mistake may have its time frame to be rectified depending on the complication of the error. Here on this website, you can learn about the period an employer has to rectify a payroll error, click on this site to check it out!
Among the instances when there is need for a payroll error fixing is when there is an underpayment of an employee. For such case, the employee is viable to collecting penalties and this only happens when the employee wins the lawsuit. There are damages during the underpayment period that the employer pays the employee for. The employer has two years to ensure the underpaid employee receives the payments that were lost during the period of underpayment. Three years from the realization of an underpayment, the employer should pay the underpaid employee.
The other payroll error that may need fixing is an overpayment. The overpayment is different from the underpayment as the employer may start fixing the error the moment the employee reports the overpayment while an underpayment one has a ninety-day fix time to start fixing the payroll error. Collection of an overpayment is done from up to eight weeks when you tell the employer about the overpayment. There is an allowance of six weeks for the employer to ensure that the overpayment error is fixed.