Accounting, Payroll & Pension Issues/overpayment of wages and overtime

Advertisement


Question
I run a small company and made payroll errors on overtime and straight time wage payments due to a holiday that fell within the week which was paid by mistake as a day worked.  Can I legally collect the overpayments from my employees?  I am in Los Angeles, CA.
thank you

Answer
Yes you can legally collect the overpayments. You need to let the employees know what happened and if the amount is large maybe collect it over a couple of paychecks so it is not so much all at once.

You cannot bring anyone's check below minimum wage to collect an overpayment.

Shirley

Accounting, Payroll & Pension Issues

All Answers


Answers by Expert:


Ask Experts

Volunteer


Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

©2012 About.com, a part of The New York Times Company. All rights reserved.