HomeHome SearchSearch MenuMenu Our productsOur products

Three things you can do to stop a payroll system invasion

by , 31 October 2014
If you don't control your payroll system, it could cost your company a lot of money.

One of the worst kinds of payroll fraud is ghost employees. This is when someone creates a fake employee in your payroll so they can get an extra salary.

You can prevent this though. All it takes is a few simple control measures.

Read on to discover three you can use to ensure you never have ghosts in your payroll...

 

Use these three payroll controls to ensure you don't land up with ghost employees

 
Control 1: Only authorised people can add a new employee to your payroll system
 
Don't let anyone in your company add employees to your payroll unless they have authorisation. Do this using passwords and ensure only limited people have them. Change them regularly in case someone lets the password slip.
 
Control 2: Use take-on forms to get employees' information
 
Create take-on forms that new employees must fill in. This will ensure you have the correct banking information for new employees.
 
Save these forms in a secure area only you and your HR department can access. This stops other employees from filling in these forms and tricking you into loading a fake employee. Put a distinct logo or mark on the form so you can tell when it's an original.
 
*********** Hot off the press  ************
 
You can get all your business tax questions answered by our experts for FREE thanks to the Accounting  Helpdesk… 
 
It comes standard with your Digital Practical Accountancy Guide. 
 
 
*************************************
 
Control 3: Regularly cross check employees in the payroll system with the employment contracts you have
 
This will ensure you only have valid employees in your payroll system.
 
It's easy to prevent ghost employee payroll fraud with these simple control measures. Put them in place today to safeguard your business.
 
If you want more advice on how to prevent payroll fraud in your company, check out the Practical Accountancy Loose Leaf Service.
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>