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. Many problems may be made when handling the payroll. The moment the mistake is realized, it should be corrected. 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 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.
Among the common mistakes that can be made on the payroll are when the number of hours is miscalculated and any other reasons. 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. 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!
An underpayment mistake is one of the examples of payroll errors that an employer may have to fix. When an employee wins the administrative claim on underpayment then there are penalties that the employee may be paid. 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. 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 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. The employer has until eight weeks for him or her to collect the overpayment from the overpaid employee. The employee may have up to six years to correct the overpayment error.