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. There is a likelihood of a long time being spent for the correction of a payroll error. 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. This will prove to be beneficial to the employer.
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 may take a short tie to be rectified and there are those that may take a while longer especially if the problem is complicated. View here 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 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. This is different from the underpayment as the employee determines when the time the correction is made as it is corrected the moment the employee tells the employer. 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.Click here to learn more on the benefits of payment payroll error fixing.
