A Simple Plan:

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. 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. 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. 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. An employer is likely to benefit from this.

The mistakes that are commonly made on the payroll are miscalculation of hours and so on. There are many cases of payroll errors and the thing that the employer has to do is try and fix the problem. The mistake on the payroll must be within ninety days of realization for rectifying to be done. 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. 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 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 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. The employee may have up to six years to correct the overpayment error.