How Long an Employer Has to Fix a Payroll Error
People are bound to make mistakes and it is understandable, the problem comes in when the mistake is with the payroll. There are several kinds of payroll errors that can be made. The moment the mistake is realized, it should be corrected. 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. 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 may benefit the employer in many ways.
Among the common mistakes that can be made on the payroll are when the number of hours is miscalculated and any other reasons. 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. It is vital to understand how long you have to rectify the payroll mistake as an employer. Ever payroll mistake may have its time frame to be rectified depending on the complication of the error. 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. 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 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 time that an employer takes to fix an overpayment error is dependent on the time when an employee reports an overpayment. 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 employer may take six-year to finish the overpayment payroll error fixing.