No payroll process is perfect, and errors may occur for a variety of reasons. Thankfully, companies can issue retroactive pay to ensure workers receive compensation for hours or pay rate changes that took effect during a previous pay period. Businesses can use employee benefit services to provide payroll assistance, teaching them effective methods to monitor and track employees' retroactive pay.
Employers can use retroactive pay to compensate an employee for work completed in the past, but must understand how to enter the information properly into a payroll system to avoid additional mistakes.
Unfortunately, it may take an employee days, weeks or months to get a payroll error fixed. Some companies require workers to complete paperwork explaining the payroll error they noticed on a paycheck, which human resource departments may need to research before issuing retroactive pay. However, employee benefit consultants offer guidance to help employers simplify the process.
Employee benefit consulting companies provide insight into retroactive pay, helping businesses set up a process across an organization. Employers can learn the tools necessary to deliver retroactive pay quickly and easily while reducing the risk of future payroll errors.
