Regardless of the reason for overpaying an employee, payroll departments must follow the rules for handling, recovering overpayments
Mistakes happen. No matter how careful payroll professionals are, sometimes they inadvertently pay employees more than they should. Through a data entry mistake, a company may accidently pay an employee $3,500 instead of $350. Payroll may erroneously pay an employee a premium for working on a statutory holiday when the employee was not eligible for it.
