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I paid an employee in error. What do I do?

If you have processed a payroll with an erroneous payment to an employee, Insperity cannot stop that file from processing through to the bank. However, you may have some options for correcting this error.

  1. If the employee is active, you may be able to adjust their next paycheck in order to correct for the error. You would need to ensure that the adjustment does not result in a negative wage calculation which could create an issue for the payroll tax calculation.
  2. You can request a direct deposit reversal from the account for the amount that was deposited. Confirmation that the reversal was successful will take 5-7 business days.
  3. You could ask the employee to return the funds to you directly and process an adjustment to record this in the system.

You should reach out to your payroll specialist in order to discuss these options available to you. Your payroll specialist would be able to provide you with guidance that you need to proceed.

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