Payroll error

Mr. CooL ICE

Imagine the scenario where an employer paid an employee an extra day by accident, and due to the employee's wage rate being close to the tax 'bracket', the employee ended up with less net income for the month than normal.

In this case, what would the employer/employee be able to do to fix this? Would the employer normally deduct a day's wages from the following month to amend their own mistake? Or would the employee normally be issued with a refund for the employer's mistake?

I've tried finding this out but the majority of searches are for what happens with errors in payroll software as opposed to what happens when the person using the software makes an error. Any links to payroll dos/donts would be appreciated too.

seamus

The employer is still due the money back, however most of the time when this error is made, it's external to the software - a cheque is lodged twice, an instruction is sent twice.

In this case, the payroll software thinks that the employee earned X + Y, when the employee only earned X.

What the company *should* do is pay the employee X - Y next month. This will level up the gross pay of the employee and the payroll system *should* compensate the tax back.