Essential Steps To Spot Payroll Fraud
Quick Ways To Spot Payroll Fraudsters
Payroll fraud is a constant problem for firms with fewer than 99 employees, claims Fiducial, a franchiser of small-business accounting and financial service firms.
These firms represent 39% of fraud cases with an average $127,500 lost in each incident.
Fiducial attributes the losses to lack of controls—e.g., one employee writes and signs the checks, manages and reconciles bank statements, handles payroll and keeps the books.
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Fiducial suggests watching for these signs:
- Unusual spikes in checks presented for payment
- A payroll service delivering multiple packages during the payroll period
- A payroll service paying unusually high federal or state payroll taxes
- Do you have Employees or Independent Contractors – Find out HERE
Recommended Payroll Fraud Prevention Steps:
- Review bank statements for unfamiliar third-party fees;
- Check bank statements online at least twice a month;
- Do background checks on new employees; and
- Set up controls—e.g., one employee enters data and another reviews it.
(Copyright: The American Institute of Professional Bookkeepers, VOL. 2: Issue 20)