missed paying shift differential or overtime on paycheck

Michigan
If any time is missed being calculated on payroll and is not found until the employee receives their paycheck must we write a separate check or can it wait until next payday.

Comments

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  • When I did payroll and had this happen, I would usually look at the $$ amount of the check. If we are talking about only a few dollars, I would usually wait until the next payday but if I was looking at $20 or more, unless the error was due to the employee's failure to accurately report their time, I would usually run a separate check.
  • Don't know about the legalities of it, but we discuss it with the employee. To some, missing $20 will result in the rent not being paid, to others, missing a paycheck wouldn't be a big deal. We don't ask them to justify issuing a check, just: "Do you need it, or can it wait until next payday?"
  • In all these cases, I pay right away when our error is caught..do a calculation in the payroll system for a voucher entry, and pay out of petty cash - no matter how small or large . My immediate attention to this lets the employees know that I am fair.

    Chari
  • At my former employer, if over $10 and our fault we would either do a separate check right then or pay out of petty cash (up to $25). If we paid out of petty cash, we always made the adjustment in the next check so that taxes could be calculated. If the employee's fault, i.e. they don't turn in a leave slip, etc., it waits until the next payday. This system worked well. Not that I am a cold HR person, I totally understand the rent having to be paid (been there), however, employees must be responsible for doing what they are suppose to do just as we are.

    In your case, if you knew they were to be paid shift diff and overtime and it didn't get done, I would either do a new check or pay out of petty cash.
  • It depends on your state law and your union contract, if you have one. Our state law does not address this; however, where I worked before this, the contract stated that any error in excess of $49 due the employee, had to be corrected upon discovery even if by a separate check. Otherwise it waited until the next cycle.
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