No matter how careful and watchful we human are when on a task, mistakes are bound to happen sometimes.
This mistakes happen in our everyday endeavour and activities and payroll is not exempted
Hence it calls for concerns when we are on payroll or anything relating to finance to watch out for this errors. As identifying and eliminating errors will help save cost, restor business confidence and lots of issues at the end of the day.
No business can be sustainable if loses are not minimise or eliminate, again no business can survive if errors are made in favour of payment of salaries to employees and when business lose money from overpaying a worker, this could put the business at risk.
Looking the other way round, it will really be unfair to underpay workers as they will feel cheated and this could kill their morale and make them to take action against their boss like filing a suit against the employer.
So the bottom line is that all hands should be on deck to spot errors and get them corrected immediately.
We are here to discuss the time frame for businesses to quickly identify and fix issues arising from payroll errors as recommended by the law.
Why mistaken or error happens?
The company miscalculation:
Mistake from company’s miscalculation is often regarded as the commonest errors you see in everyday business world.
With PTO, commission, deductions, overtime, and more, it becomes difficult for businesses to keep track on this if they ever occur not to talk of correcting them.
This errors are more pronounced when competent hands or more reliable method are not used to track actual hours of work. Honestly this most occurs where manual method are employed.
Glitches in payroll software:
Adopting more efficient method to eliminate errors like getting a reliable payroll software remains the best, why is this so? software are known to be better at updating and handling larger financier task than human
But this doesn’t mean that softwares are not prone to errors. There is every possibility that a glitch might occur which might cause failure at some point in getting an accurate payroll audit.
Switching from one payroll system to another:
Switching or transferring from one payroll system to a new payroll system comes with its own challenges such as missing data, not up to date record or lack of better way at transfering the data, miscalculating the pay, misclassifying employees all this could just leave some mistakes unnotice ‘
The company is caught in a rush:
In a situation where everything is done in a rush in payroll processing just to beat deadlines mistakes are bound to occur .
When a company wouldn’t want to delay in crediting its employees bank account at the end of the month, So with the rush; mostly figures that are beyond or below what it should be might be sum up.
fixing a payroll error ; see how long it takes ?:
The time it takes for a company to get a payroll error corrected or fixed differs and a lot of things comes into play; like location. But the maximum known period is usually 2 years.
The bottom line is that such errors should be fixed immediately they are identified.
Identification of errors that has to do with underpayment should be handled swiftly for the general good of all.
The labor law is clear, which demands for full payments to an employee on work done.
There are two options that can be employ here, first is to issue a new check or rather add the balance to the next pay check.
Mistakes are bound to occur like we said, so its not a crime when such happen.
But the main problem here is where a company fails to correct such mistakes even after they noticed it or they are called to it.