Accounting

Several cases arise concerning the payroll which is often as a result of improper coordination between the human resource and the payroll department. These cases should be dealt with differently depending on which stage they are detected.

This case involving Ken and this company is common in many companies where there is no proper coordination between the human resource and the payroll department, corporate or otherwise. Even before following Ken, the company should with immediate effect put in place proper communication and coordination networks not only between these two departments but also with other departments.
 
This is important to avoid not only this kind of simple mistake which has turned out costly but also others to mention but a few missing deadlines, poor record keeping and data entry, misclassifying workers, failure to have adequate backup, miscalculating overtime payments, failure to maintain confidentiality and most importantly placing so much reliance on the software programs which are not without errors. (Nottinghum University Hospitals, June 2009)

Going back to Ken, any future payments related to him should be stopped with immediate effect. The payroll department should then consult a manager who knows Ken well, for example the line manager in the department he was working in, giving all relevant details of this case which should be supplemented with written evidence.

The manager should then make arrangements to see Ken in person upon which they should forge an agreement of how the amount should be recovered. This should be put down in the Recovery of Overpayment agreement form. The manager may need to involve other members like the heads of payroll and human resource department. (Nottingham University Hospitals, June 2009)

At this meeting the following should be discussed the reason for refusal to refund the overpayment, the amount involved, if the employee is still willing to refund this amount and if yes within which duration. Also, other relevant information that Ken has should also be listened to.

If at this meeting a solution is not arrived at, then the company should seek legal redress on this issue. This should be the last option.