Many companies around the world are facing the crisis due to the frauds that take place in their office on a daily basis by their employees, supervisors and managers. Every penny that goes to fraud puts a dent in the company’s profits.
Don’t let your business fall victim to the same situation, be extra cautious with your employees and make sure they are correctly filling out their schedule for proper payroll calculation and their paycheck. You can keep track of the following things to ensure that your employees are not committing any type of company fraud:
- Forget the payroll advance: Most employees take their payroll in advance and then forget about it. It is always best to write down all the pay advances your employees have taken from you so that you can do the correct calculation of your payroll and not pay them extra.
- banging for friend: This is the most common type of fraud that takes place all over the world. This practice involves sharing your personal information with your friend in the office and letting them clock in on your behalf. In most cases, sometimes even an employee gets paid for the day he was off. The electronic time and attendance system has provided a solution to this problem.
- Unauthorized hours of clamming: This type of fraud is very difficult to detect. This happens when employees add unwanted hours to their timesheet. They show that they have been working extra in the office and have reduced their lunch hour etc. One has to be very careful to keep a proper check on their employees so that they can’t bluff overtime.
- false expense: This type of fraud is carried out mainly by the sales profile or by people who travel a lot or have access to the company’s credit card to incur their expenses. They show counterfeit bills to get extra money from the company. Make sure your employees keep a record of all original receipts. A business should always verify the authenticity of the receipt by calling the merchant.
- Worker’s Compensation Fraud: No industry is safe from this type of fraud. Employees will attempt to fake an injury, such as a joint problem, stiff neck, back, etc. to falsely claim money from you and your insurance company. This type of fraud can quickly lose thousands. One way to verify the authenticity of such fraud is to have a surveillance camera in your office. You can check on your office camera whether your employees were injured on the office premises or not while they are reimbursing their medical claims.
If you can take care of all the points mentioned above, you will surely save a good amount of money. The other solution to this problem is also to hire a small business payroll company, which can implement all the processes for you. This company will implement all the desired systems and will also calculate the payroll of your employees. Make sure you hire an honest and trustworthy employee for your company.