People are bound to make mistakes and it is understandable, the problem comes in when the mistake is with the payroll. 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 an error is made on the payroll and the mistake is noticed, a professional needs to be consulted to advise on how to handle the problem. 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. An employer is likely to benefit from this.
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 important to know how long an employer has to fix a 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.
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. The employee may get paid for the damages caused when the employee was being underpaid. The employer has two years to ensure the underpaid employee receives the payments that were lost during the period of underpayment. 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 payroll error that may need fixing is an overpayment. 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. There is an allowance of six weeks for the employer to ensure that the overpayment error is fixed.