Stop Payroll fraud today!

Feb 6, 2017

Industry News

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stop payroll fraud

 

For business owners, identifying payroll fraud and then being able to collect the necessary evidence to be able to stop this from continuing, is about putting sufficient controls and measures in place, such as:

• Internal or External Audits
• Change Authorisations – only allow changes to an employee’s information if the employee has submitted a handwritten and signed request for the company to do so
• Run error- checking reports
• Do expense trend lines. Look for fluctuations in payroll- related expenses in the financial statements.
• Issue payment report to supervisors. Send a list of payments to employees to each department supervisor, to review payment amounts and unfamiliar names
• Restrict access to records
• Update signature authorisations. When payment authorities leave the company, remove them from the authorised signer list and forward the information to the bank
• Match addresses and banking accounts of employees
• Segregation of duties: bank signatory versus the person processing payroll
• Perform regular reconciliations
• Ensure that employee personnel data is regularly maintained and updated
Since payroll is one of the biggest expenses in any business, payroll fraud or errors in capturing your payroll data can be costly. Fraud can have serious consequences, both financially and in terms of the corporate culture. Making it hard to commit it in the first place makes good business sense in every way.

#Payroll
#UphandoHR
#SettingTheStandards


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