What action should be taken if temporary disability was paid at an incorrect rate?

• A. Pay the amount due
• B. Pay the amount due with a self-imposed penalty of 10%
• C. Begin paying at the correct rate
• D. Begin paying at the correct rate plus 10% for delay

Answer: (B)

The appropriate action when temporary disability has been paid at an incorrect rate is to pay the amount due along with a self-imposed penalty of 10%. This approach recognizes the obligation to correct the payment discrepancy by providing the employee with the full, correct amount they are owed, plus a penalty, which serves as a form of acknowledgment for the mistake.

Implementing a 10% self-imposed penalty demonstrates accountability and compliance with best practices in handling such errors. It helps maintain trust and transparency between the employer and employee, showing that the employer is taking steps to rectify the oversight thoroughly.

While it is necessary to pay the amount due and ensure payments are made at the correct rate moving forward, simply adjusting the future payments without addressing the past overpayment lacks accountability. Similarly, while covering the amount with an added penalty for delay may seem fair, it is not standard practice to impose a penalty unilaterally when correcting a payment error. Therefore, combining the repayment of the amount due with a self-imposed penalty strikes the right balance in these circumstances.