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. There is a likelihood of a long time being spent for the correction of a payroll error. 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. There are many of those professionals that the employer may use either from the company or business or an external professional may be of help. This may benefit the employer in many ways.
The mistakes that are commonly made on the payroll are miscalculation of hours and so on. he payroll errors are bound to happen and what an employer out to do is get a solution for the problem. The error must, however, be realized within ninety days of the release of the payroll. The employer should be aware of the period that he or she has to fix the 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 here on this page to learn more about how long an employer has to rectify a payroll error click for more info.
Among the instances when there is need for a payroll error fixing is when there is an underpayment of an employee. When an employee wins the administrative claim on underpayment then there are penalties that the employee may be paid. 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. An employer that deliberately underpaid an employee has up to three years to pay the underpaid employee and this period is from the moment when the underpayment was noticed.
The other instance of payroll error is when there is an overpayment of 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 employer may take six-year to finish the overpayment payroll error fixing.