How Long a Payroll Error Should Take to Be Resolved By an Employer
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. This can, however, be a long process. 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. An employer may choose to consult a professional within the company or have an outsourced help as the problem may be a serious one to handle. 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. The error must, however, be realized within ninety days of the release of the payroll. It is vital to understand how long you have to rectify the payroll mistake as an employer. 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. 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. 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. During the underpayment period, there are damages that the employee gets and the employer should pay the employee for those damages. The employee may receive his or her payment within two years. 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 time when there is a mistake on the payroll is when an employer overpays 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. There is a six-week period that an employer may take to fix any problem of overpayment and it is this time that the employer has to collect the overpayment. The employee may have up to six years to correct the overpayment error.