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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.
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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.

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