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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. There are several kinds of payroll errors that can be made. The moment the mistake is realized, it should be corrected. The procedure that should be taken for the fixing of the payroll may take a long time. 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. There are many of those professionals that the employer may use either from the company or business or an external professional may be of help. This may benefit the employer in many ways.

An example of the commonly made mistakes on the payroll is a miscalculation of hours and many others. 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 on this homepage to discover more about the period that an employer may take to resolve a payroll error that is detected.

Among the instances when there is need for a payroll error fixing is when there is an underpayment of an employee. 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. 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 time when there is a mistake on the payroll is when an employer overpays 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 employee may have up to six years to correct the overpayment error.