When it comes to payroll processing, two of the most common errors that arise are underpayment and overpayment. This can happen quite easily, often with no more than an incorrect key-punch or an inadvertent click of the mouse. ASC Payroll, New York's go-to payroll company, can help you identify and correct these errors, and is happy to assist in any payroll preparation your business undertakes.
If an employee is overpaid, the issue first needs to be brought to the attention of the employee. He or she will have to repay the net amount of overpayment. The employer, in turn, needs to amend all federal and state tax returns to reflect this change.
If an employee receives less than his or her current state of pay, this is called an underpayment. Underpayments need to be handled with speed and efficiency, and must be corrected no later than the subsequent pay period. The employer should correct the underpayment by paying out the difference to the employee in the next paycheck. If waiting for the payment places a hardship on the employee, the employer should issue a special check immediately, in order to right the error.
It's important to remember that overpayments and underpayments, while inconvenient to both employer and employee, are fairly normal mistakes. There is no reason to be alarmed, and, with proper payroll specialists on your side, you can avoid these common errors. When you choose ASC Payroll, you have the comfort of knowing that the intricacies of your payroll are being handled by respected industry professionals who have been in the payroll business for three generations. Call ASC today at (212) 684-0800 to find out more about the services they offer.