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How Long an Employer Has to Fix 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. 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. 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.

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. The mistake on the payroll must be within ninety days of realization for rectifying to be done. It is vital to understand how long you have to rectify the payroll mistake as an employer. 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. Here on this website, you can learn about the period an employer has to rectify a payroll error, click on this site to check it out!

Among the instances when there is need for a payroll error fixing is when there is an underpayment of an employee. 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 employee may receive his or her payment within two years. An employer that deliberately underpaid an employee has up to three years to pay the underpaid employee and this period is from the moment when the underpayment was noticed.

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. Collection of an overpayment is done from up to eight weeks when you tell the employer about the overpayment. The employee may have up to six years to correct the overpayment error.