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I have a story about this! Back in 2015, I was in charge of HR and we were giving a raise to an IT person. They were going from $31.5k/year to $45k/year. Their per pay period was going from $1,213.85/pp to $1,730.77/pp. But, the HR clerk at the time goofed it .....

Jimmy Malone@malonespeaking.bsky.social

Did they pay taxes on this money? Will they get that back? Only giving them 30 days to repay is totally unreasonable. fox8.com/news/local-c...

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They put the $1,730.77 as their hourly rate, not pay period rate. So on the next pay check, it gave the employee $138,461.60 gross wages. The amount of taxes that it took out was breath taking, but I don't have those details anymore, I believe what actually hit the bank account was going to be 60k

At the time, we submitted the payroll file on Wednesday, it would take out of our bank on Thursday and hit employee banks, sometimes Thursday but definitely by Friday. After it was submitted, when the HR manager was reviewing the bank draw, they noticed the bank draw was 60k higher than normal...

and figured it out Thursday morning. The employee also figured it out Thursday morning because they saw the pending transaction and they reached out. We talked to our payroll company about how to reverse it and that's when I learned something fun, that the payroll company could just take it back.

They explained that when the employee signed up for direct deposit, it opened a two way street. They said it would be no problem for them to just take the money back from the employee and then we were going to cut them a check for the appropriate amount. And that happened. In about three hours.