What are the fraudulent activities that can take place in payroll?

 Payroll fraud is one of the most common ways to steal money from a company. This type of fraud involves stealing money from your business’s payroll account. It is difficult to detect this type of fraud because it remains hidden for a long period, even though many businesses do not take steps to prevent it.

For things to make easier, look for an expert payroll accounting services team that can effectively manage your payroll documentation, expense claim disbursement, and processing pay slips.

Let’s Go Through Some Common Type Of Payroll Frauds In A Company:

Ghost employees:

Frauds are often conducted by issuing payments for fake or former employees. This type of fraud is common in large organizations that may hire temporary laborers or workers.

Falsified wages:

Occasionally, employees claim that they worked hours that they did not actually work. The co-workers will punch their timecards even when the employee was not present and persuade the employer that he or she worked during those hours. This is one of the easiest ways to commit fraud.

Timesheet fraud:

In this case, the employee entered late and logged the time as if it was a regular day. The employee then skipped some hours and left early. In order to hide the skipped hours, the employee asked his co-worker to log time for him.

Commission fraud:

It refers to the act of representing fake sales records for the purpose of earning a commission. Companies that provide extra incentives for increasing sales must be aware of such fraudulent activities.

Expense reimbursement fraud:

Sometimes, employees may try to get reimbursed for expenses that are not work-related. This will lead to huge costs if they are not dealt with on time.