If a payroll error occurs when an employer is loading an employee's paycard, how should the employer correct the error?

Author: Alice Gilman

Generally, payroll errors made when loading a paycard should be corrected under the rules that apply to direct deposit. If the error was a duplicate, unintended or erroneous payment and/or net pay differed significantly from the amount due to the employee, the employer should initiate a reversal within five days after payday and notify the employee. However, because state law may further restrict reversals, the employer should contact and work with the paycard vendor to ensure expeditious correction of the error.