payroll

We recently learned that our outsourced payroll provider has mistakenly continued to make severance payments to a terminated employee for several months beyond the cut off.

Besides recourse against the payroll services provider, is there any recouse against the former employee who has continued to accept severance payments which he knows he is not supposed to be receiving?

Comments

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  • I would leave that up to your provider. They need to reimburse you for all overpayments, including taxes. They can collect from the ex-employee.

    I used a service about 10 years ago. One of their 'sell' items was the ability to do taxes, and to protect us from tax mistakes. Within a few months I noticed they were not complying with a state law. I brought this up to them and they told me they had never heard of it. It was a long time law, and that year it happened to be on the 1st page of the instructions the state gives out. Things went downhill from there. Never again will I outsource payroll.

    Good luck!

    Nae
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