What is a Payroll Mistake?
Payroll mistakes are when an organization pays its employees incorrectly or fails to pay them at all.
Payroll mistakes can be committed by individuals within the organization or by a third party payroll service. Payroll errors can be the result of poor programming, misreading of electronic files, and human error.
Payroll mistakes range from overpaying employees to not paying them at all. Payroll mistakes can also be caused by incorrect wage calculations and benefits such as overtime, holiday, and vacation pay. Other payroll mistakes could include benefits being incorrectly calculated or skipped altogether.
How to Fix Payroll Errors?
- Cancel the payroll immediately, make updates, and reprocess it.
- Run an additional, manual payroll with the necessary adjustments for only the affected employees.
- Make adjustments on the next payroll to counteract previous mistakes and get things back in balance.