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How Long an Employer Has to Fix a Payroll Error
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 moment the mistake is realized, it should be corrected. There is a likelihood of a long time being spent for the correction of a payroll error. 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 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.
The mistakes that are commonly made on the payroll are miscalculation of hours and so on. 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. 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 here on this page to learn more about how long an employer has to rectify a payroll error click for more info.
The first instance when an error may be noticed is when there is an underpayment. For such case, the employee is viable to collecting penalties and this only happens when the employee wins the lawsuit. There are damages during the underpayment period that the employer pays the employee for. The employee may receive his or her payment within two years. 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. The employer may take six-year to finish the overpayment payroll error fixing.