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. Upon the detection of a payroll error, an employer must try to fix the error. This can, however, be a long process. 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. 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.
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 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 here on this page to learn more about how long an employer has to rectify a payroll error click for more info.
An underpayment mistake is one of the examples of payroll errors that an employer may have to fix. There are penalties that an employee is viable to getting and this is possible when the employee pursues a lawsuit on underpayment and wins the lawsuit. 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. 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.
Attributed by: my sources