There are many mistakes that humans make and it is reasonable for mistakes to be made but when it comes to payroll error then the mistake is a serious one. 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. 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 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. he payroll errors are bound to happen and what an employer out to do is get a solution for the problem. The error must, however, be realized within ninety days of the release of the payroll. The employer should be aware of the period that he or she has to fix the payroll error. 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. 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 has two years to ensure the underpaid employee receives the payments that were lost during the period of underpayment. 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. 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. 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.