What should an employer do if an error is discovered in an employee's payroll?

When an employer discovers an error in an employee's payroll, adjusting the withholding in future paychecks is the appropriate course of action. This ensures that the employee’s tax responsibilities are correctly aligned moving forward. If there was an over- or under-withholding issue, making future adjustments helps to correct the mistake without leaving the employee at a disadvantage for the upcoming tax period.

Employers are responsible for ensuring that payroll is accurate and compliant with tax laws, so handling the situation proactively by adjusting withholdings keeps the payroll process transparent and maintains employee trust. Additionally, this method allows the employer to rectify the financial impact on the employee over time instead of attempting to correct past payments that may complicate year-end tax filings.

Addressing errors promptly and through future adjustments reflects a commitment to accurate payroll practices and responsible employee management.