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. 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 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. 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 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. 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!
The first instance when an error may be noticed is when there is an underpayment. When an employee wins the administrative claim on underpayment then there are penalties that the employee may be paid. The employee may get paid for the damages caused when the employee was being underpaid. 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 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. There is an allowance of six weeks for the employer to ensure that the overpayment error is fixed.