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This 4 page Document was uploaded by an elite notetaker on Tuesday December 22, 2015. The Document belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 9 views.
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Date Created: 12/22/15
1 Payroll fraud can be determined as an illegal act of manipulating or altering the payroll. This is commonly committed by the one in charge of the payroll. In other words, they are cheating the payroll system for their own benefits. But sometimes, the person in charge may not be the only culprit of payroll fraud. Anyone who has a connection to the payroll could be one of the felon or may be the group of felon. In a business, fraud is, arguably, inevitable, but they can be prevented. There are several kinds of payroll fraud. These are just one of the most common act: Ghost employees - These are the employees that do not exist. The felon creates a fake employee who is not working in the organization. This is done to adjust the payment records so that he can take away the money which is made out for the ghost employees. This is one of the most popular payroll frauds that is usually happening in large companies. Due to the large number of employees, the management sometimes fails to notice the unauthorized act. Manipulation of Tax Withholdings – A payroll felon can just manipulate his withholdings and guarantee himself that he can obtain substantially higher salary. Anyone who is part of the company that would conspire with the felon can just enjoy the money among themselves. They can fake the tax withholdings and adjust their pay rates. Hours Alteration – If an employee conspire with the payroll felon, it would be just easier for them to alter the total number of working hours yet still receive a salary without deductions. This is totally unfair to other employees. Anyone can alter their working hours in different means. Let say, the company does not have biometric time clocks. If two employees agree to cover up one another to punch their hours into the company time clock whenever they’re late, absent, or on- leave. If you notice something suspicious in your payroll, it may be one of the payroll frauds mentioned above or other kinds of it. That’s why it is important for us to be aware of the payroll process our company has. If you find your in-house payroll dubious or somewhat that is not legit, then you just caught a payroll fraud. Have a regular update on your payroll. It is very important to keep your payroll status up to date. Your payroll must equate to the right employees you have. Keep your information updated along with the HR people. So that, inappropriate employee would be determined right away. And check if the payroll system is working well, in a legit manner. Monitor and review employee information Conduct a monitor and review regarding your employees or supervisors. It’s like you’ll have a regular checkpoint about them. You have to look at some of their personal information, bank account information, pay rate details, so that you can review if there’s something wrong or nothing’s suspicious about that certain employee. Use Automated payroll system When using the automated payroll system, it would not be that easy to alter some significant information needed to process the payroll. Since it is automated, it would much like paperless payroll. Automated security should be implemented. To learn more bout payroll visit our websites: www.payrollsystem.ph www.australiabpo.com www.australiacallcentres.com
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