How Long an Employer Has to Fix 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 different kinds of mistakes that can be made on 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. 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. An employer is likely to benefit from this.
The mistakes that are commonly made on the payroll are miscalculation of hours and so on. 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. The employer should be aware of the period that he or she has to fix the payroll error. There are those payroll errors that may take a short tie to be rectified and there are those that may take a while longer especially if the problem is complicated. Click on this homepage to discover more about the period that an employer may take to resolve a payroll error that is detected.
The first instance when an error may be noticed is when there is an underpayment. 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. 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 time when there is a mistake on the payroll is when an employer overpays an employee. The time that an employer takes to fix an overpayment error is dependent on the time when an employee reports an overpayment. Collection of an overpayment is done from up to eight weeks when you tell the employer about the overpayment. There is an allowance of six weeks for the employer to ensure that the overpayment error is fixed.
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