Inadvertently didn't pay unused PTO to separating employees

AZHR

Through an internal self audit, we discovered a handful of separating employees were not paid their unused PTO. All separated 6-8 months ago while our usual Payroll person was on leave. We are now going to send these former employees a check for the unused PTO. Do we owe any extra amount (interest??) because the PTO wasn't paid out when they left?

HRCalico

I don't know that there's a law on this, either federal or AZ. Hopefully someone else might know. I'd say you're doing the right thing by sending them a check now. I'd hope that they will just be glad to get the money and wouldn't come after you for more. That, and looking at my savings account statement, interest doesn't add up THAT fast, and I'd guess you're talking about maybe a few hundred bucks for each person. Even if you were to compound it, I can't imagine it would be enough to raise a stink over.

E Wart

I dont' know AZ law, but you aren't required to pay them in Fed law. I would just send them checks (and W-2 for 2006) and don't worry about it. If they didn't ask, I bet they will be surprised and welcome it.
E Wart

Wildsporty

I would do as the other two and just send the checks out. They are just going to welcome the extra funds. No one is really going to question it.

Dutch2

I agree. A strong point for your side is that your company discovered the error they took immediate action to correct same.

NaeNae55

I agree with the others. If you had missed giving someone a raise for 6-8 months you wouldn't go back and add interest. You would just do a retro payment. Just pay them and make sure they get a W2 for 2006.


Good luck!

Nae