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Three smart ways to eliminate payroll fraud in your company

by , 25 July 2014
In this tough economy, your employees will do anything to get their hands on extra cash. And that may include defrauding your company.

So you need to arm yourself with solutions to curb fraud. If, you don't, your business could go bankrupt.

Since that's a risk your company can't afford to take, use these three smart tips to eliminate payroll fraud in your company.

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Eliminate payroll fraud in your company with these smart tips
 

#1: In this article, we explain that one of the types of fraud to lookout for is buddy bunching.
 

This is when employees punch in their friends on to system to make it seem as if the person was at work when he wasn't.
 

To eliminate this type of fraud, Lia Marus, the editor of HR Pulse, writes that you should:
 

  • Get a supervisor to stand at the time clock at the beginning and end of each shift. This will make employees think twice about falsifying their hours.
     
  • Incorporate fingerprint-scanning technology into your company's clocking-in/clocking-out process. This will make it much harder for employees to falsify hours on behalf of their colleagues as people's fingerprints will need to be scanned to verify that they're actually at work.
     
  • Have different entry and exit points to your company.

 

#2: The other type of payroll fraud experts behind the Practical Accountancy Loose Leaf Service always speak about is false expense claims.
 

This type of fraud happens when staff members try and claim unauthorised or false expenses.
 

To guard against this fraud, make sure your employees don't pass off personal expenses as business expenses. Scrutinise every single till slip or company credit card statement you get presented with to sign off, says Marus.
 

#3: Overall, the best solution to eliminating payroll fraud is to ensure a limited number of people have access to your company's payroll information. These people must only have access because it's a requirement of their job. This way, you can easily take them to task if something seems dodgy on your payroll.
 

There you have it. We hope these tips will help you eliminate payroll fraud in your company.
 

 



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