Rising Trends of Payroll Crimes

Crimes have no limit and these days it’s on hike. Corruption levels have increased manifold all around the world and to curb these practices of fraud and corruption law and orders are made more strict. But so are the minds of people which are working towards these negative things. Talking about the corporate world there is huge loophole that employees have found. They indulge in fraud practices to fill I their pockets. One such practise is payroll says Attorney Miya Griggs Payroll is a procedure of payment of salaries to the employees and stealing of cash through processing of payroll system is known as payroll fraud. The business staff are able to commit such fraud in different manners which are as follows:

One of the methods is not paying back the advances or making it adjust in the salary amount. This fraud is done in connivance with the accounts department. The officials in the department register them to expenditure rather against assets and therefore do not ask the particular employee for repayment. So this type of entry does not reflect any foul play and thus such amount is neither recovered nor monitored by the accounting staff. This sort of mistake could be rectified if monthly audit is performed.

Another procedure is termed Buddy punching. This is the method by virtue of which your fellow staff member’s working hours punched into your account when the former is on holiday says Attorney Miya Griggs. This could be rectified by properly supervising it and warning the employees with dire consequences, if found wrong. Use of biometric time clocks which help in tracing the signature of employees.

Another process is by way of creating a ghost employee:

The officials of payroll add fake employees in the records of payroll or do not delete the names of those employees who have already left the job and simultaneously draw the payment against his or her name says Attorney Miya Griggs. This happen in big business houses which have a big employee force and also when new supervisor has not been appointed while the old one has already relinquished the job.

Auditing of accounts of the company’s payroll is required to be conducted from time to time to get the information of fake employees. When it is found that there is no payment made to the offender as maximum amount of payment is demanded by the culprit, this way a ghost employee may be held.

Paycheck Diversion:

The cheque of an absent staff member is drawn and gradually encashed. These unclaimed checks should not be issued by the paymaster in order to avoid the misuse and the identity proof in the form of driver’s license or some other proof is mandatory before drawing the payment.

Originally Posted: https://attorneymiyagriggs.wordpress.com/2020/11/26/rising-trends-of-payroll-crimes/