******Recommended product: fraud-proof your business today! ******
Ghost employees are one of the top 9 most common fraud schemes in SA!
to protect your business from ghost employee fraud and 8 other common crippling fraud schemes!
How to implement a good salary and wage control system in six easy steps
Use the following six steps to strengthen and fraud-proof your salary and wage control system.
Step #1: Your salary control environment needs to adhere to your company policies
The salary control environment is a high risk area for fraud. So make sure you have very strict security controls and privacy protocols, where information is secure.
Step #2: Segregate duties in the payroll function to reduce your risk of fraud
If you have the same employee capturing, approving and making payments, your business is at risk as the individual can easily commit fraud. That employee could pay himself or others in the company more than he should. He can also make payments to fictitious employees.
Step #3: Appoint reliable trustworthy staff
Choose and appoint competent staff members in your salaries and wage control system. They're responsible for accurately calculating and paying your employees' salaries/wages, so you can't leave this task to incompetent or untrustworthy staff.
Read on for three more steps to fraud-proof your payroll…
Discover how to eliminate fraud in your:
With this one tool
Accounts payable department;
Financial statements and more…
Step #4: Set up clear responsibilities
Each employee needs to know what their responsibilities are. This will reduce the risk of fictitious salary payments and/or salary increases.
Step #5: Employees need a proper functioning job clocking system
It's important for each employee to show they've performed their job and complied with the company policies. This brings transparency and accountability into your system.
Step #6: Reconcile your salaries and wages
If total salaries as on your payslips for the current month differ from the total salaries actually paid to all employees then find the employee who was under/overpaid and adjust it accordingly.
There you have it! Now unlike the North West Province, you can protect yourself from ghost employees!
Ask your fraud related questions for free on AccountingandTaxClub.co.za
and one of our Accounting experts will answer your question in just 72 hours!