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What can we do? We overpaid, employee knew it and didn’t come forward

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in Small Business Tax Deduction Strategies

Q. Because of a human error in our payroll department, one of our part-time employees has been receiving a full-time salary for the past six months. Although we recently realized our mistake, the employee never came forward to let us know about the error. Aside from recouping the funds, what actions, if any, can we take against this employee for not being forthcoming?

A. You should consider disciplinary action against the employee, up to and including termination of employment. In making the decision of whether to discipline (and what discipline is appropriate), you should conduct an investigation, including an interview with the employee. In addition, you should consult your organization’s policies and procedures and review how you have dealt with other, similar situations (if any have taken place) to ensure consistency.

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