Period That an Employer May Have to Rectify a Payroll Error
There are several times when people make errors and that is normal but when there is a payroll error then it may be a different case. There are several kinds of payroll errors that can be made. The moment the mistake is realized, it should be corrected. The procedure that should be taken for the fixing of the payroll may take a long time. 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. An employer is likely to benefit from this.
An example of the commonly made mistakes on the payroll is a miscalculation of hours and many others. There are many cases of payroll errors and the thing that the employer has to do is try and fix the problem. The mistake on the payroll must be within ninety days of realization for rectifying to be done. 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. 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. The employee may get paid for the damages caused when the employee was being underpaid. 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 payroll error that may need fixing is an overpayment. The time that an employer takes to fix an overpayment error is dependent on the time when an employee reports an overpayment. 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.
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