Period That an Employer May Have to Rectify a Payroll Error
There are many mistakes that humans make and it is reasonable for mistakes to be made but when it comes to payroll error then the mistake is a serious one. Many problems may be made when handling the payroll. Upon the detection of a payroll error, an employer must try to fix the error. This can, however, be a long process. Upon the realization of a payroll error, the employer must seek the help of a professional to get a way forward in handling the payroll error at hand. 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 may benefit the employer in many ways.
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. When the problem is realized within ninety days then it can be fixed. 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. 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 employee may receive his or her payment within two years. The two years is after the time when the underpayment was noticed and for the employers that deliberately underpaid, the period goes to three years.
The other payroll error that may need fixing is an overpayment. 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. There is a six-week period that an employer may take to fix any problem of overpayment and it is this time that the employer has to collect the overpayment. The employer may take six-year to finish the overpayment payroll error fixing.
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