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Period That an Employer May Have to Rectify a Payroll Error

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. Upon the detection of a payroll error, an employer must try to fix the error. The procedure that should be taken for the fixing of the payroll may take a long time. When a payroll error is noticed, that is the moment that an employer should take to start fixing the problem and consulting a professional on the matter is ideal. An employer must get a professional’s help and this may be possible if the company has a professional to be consulted and in case the company has none then the employer may consult a professional from the outside of the company. 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. The employer is liable for fixing any payroll error that may be realized. 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.

The first instance when an error may be noticed is when there is an underpayment. 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 has two years to ensure the underpaid employee receives the payments that were lost during the period of underpayment. Three years from the realization of an underpayment, the employer should pay the underpaid employee.

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. 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. There is an allowance of six weeks for the employer to ensure that the overpayment error is fixed.

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