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. Many problems may be made when handling the payroll. The payroll error should be rectified the very moment the error is detected. The procedure that should be taken for the fixing of the payroll may take a long time. 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. 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 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. When the problem is realized within ninety days then it can be fixed. It is vital to understand how long you have to rectify the payroll mistake as an employer. There are those payroll errors that take longer to fix and those that are easier to fix and all this depends how complicated the issue is. 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. 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. Three years from the realization of an underpayment, the employer should pay the underpaid employee.
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. The employer has until eight weeks for him or her to collect the overpayment from the overpaid employee. The employee may have up to six years to correct the overpayment error.