Techniques to Prevent Payroll Fraud in Your Organization

Payroll Fraud
                         Payroll Fraud

The most common yet expensive fraud that organizations face is payroll fraud. Statistics suggests that it can remain undetected for years, costing a company hundreds of thousands of dollars. Payroll fraud is defined as any scheme in which employees make false claims for compensation to receive a payment from the employer. Organizations also face payroll fraud where the payroll managers or bookkeepers in the accounting department manipulate the financial statements. Payroll fraud has several forms. The most common one involves workers that are paid on hourly basis, fraudulently boosting the amount they are entitled to, by altering the number of hours they have worked for. Commission workers in manufacturing get paid on the basis of the number of units they produce. Such workers sometimes manipulate records for the number of sales or units produced. Another common form includes false claims for expenses such as taking personal trips and labelling them as business trips.

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