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. There are several kinds of payroll errors that can be made. The moment the mistake is realized, it should be corrected. 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.
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 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. 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 on this homepage to discover more about the period that an employer may take to resolve a payroll error that is detected.
An underpayment mistake is one of the examples of payroll errors that an employer may have to fix. For such case, the employee is viable to collecting penalties and this only happens when the employee 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 instance of payroll error is when there is an overpayment of an employee. The time that an employer takes to fix an overpayment error is dependent on the time when an employee reports an overpayment. The employer has until eight weeks for him or her to collect the overpayment from the overpaid employee. The employer may take six-year to finish the overpayment payroll error fixing.