How Long a Payroll Error Should Take to Be Resolved By an Employer
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 payroll error should be rectified the very moment the error is detected. 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. 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 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 important to know how long an employer has to fix a 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.
An underpayment mistake is one of the examples of payroll errors that an employer may have to fix. When an employee wins the administrative claim on underpayment then there are penalties that the employee may be paid. During the underpayment period, there are damages that the employee gets and the employer should pay the employee for those damages. 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 instance of payroll error is when there is an overpayment of an employee. The time that an employer takes to fix an overpayment error is dependent on the time when an employee reports an overpayment. The employer has until eight weeks for him or her to collect the overpayment from the overpaid employee. The employer may take six-year to finish the overpayment payroll error fixing.