Payroll fraud can occur in a number of different ways. It can be orchestrated by employees who manipulate the system, or even the staff you have working on your payroll. One effective way to eliminate cases of payroll fraud is by utilizing payroll outsourcing services. However, if it is also a good idea to get to know the signs of fraud at your workplace.
When this happens, a member of your payroll staff is creating additional staff members and then siphoning this “ghost’s” pay into their own account. The “ghost” isn’t always a fake member of your staff, but they are often created due to the misuse of a more casual workforce. This is done by paying a worker who may not work often, but changing their details.
Inflation of Salary and Fraudulent Payments
One of the most common signs that this may be going on is if you have someone in the payroll office who is living significantly beyond their means. If this is going on, they may be inflating their own salary, or making payments to themselves when they have not been authorized or approved by the business owner or senior staff. This can cost company’s hundreds of thousands of dollars or more, depending on the size. With payroll outsourcing services this is not an issue because everything is accounted for.
When it comes to handling payroll in house, there are a number of things that may go wrong. One of the best ways to protect yourself is by utilizing payroll outsourcing services. Doing this will help you catch cases of fraud and eliminate it, saving your business money and helping your bottom line.
Find out more about payroll outsourcing by visiting the Innovative Employee Solutions website.