Are payroll oversights giving your employees unexpected raises?

A recent audit of West Virginia employees' payroll records revealed that many employees' earnings are much higher than the totals they were originally offered, according to The Associated Press. There were more than 3,000 state employees who received at least $5,000 in overtime pay and some workers saw $100,000 bonuses, thanks to their extra hours on the clock. 

What's worse - the biggest overtime earner was Marshall University's Doc Holliday. The audit revealed the football coach added an extra $425,000 to his annual earnings through wages that were classified as overtime pay, the AP reports. Chief of staff to Marshall president Matt Turner recently rebuked that idea, explaining that the additional pay was actually for other supplementary bonuses, which the school cites as overtime when calculating paychecks.

This issue highlights an important consideration for all employers - are payroll processing errors leading to expensive mistakes?

If companies do not track employees' time and attendance totals, they might not notice that some workers are racking up overtime totals. And while over compensating is bad, underpaying might be worse. If the Department of Labor (DOL) discovers that employers have not been issuing appropriate wage totals, they can recover both back pay and damages.