Warning: Timesheet fraud could destroy your company's payroll management
The point of your payroll system is to control which employees get what. It ensures you don't over or underpay anyone while keeping a record of it.
Unfortunately, payroll systems are vulnerable to fraud.
An incident of it could cause payroll management to nose dive and all those things it should do will go out the window.
Of all the kinds of payroll fraud, timesheet fraud is the worst.
Here's how it could destroy your payroll management...
Payroll management will hit rock bottom if you have a timesheet fraud problem
Timesheet fraud is when an employee says he worked more hours than he actually did and you'll pay him for this. This applies to both contractors and employees who work overtime
This kind of fraud is very easy to pull off if you have no way to control or monitor when your employee was or wasn't at work.
This is where the old school form of timesheets is ineffective. If your employee just puts down the hours he worked, gets his manager to quickly sign it and then submits it to payroll, he could up his hours and no one will notice it if they don't check.
To ensure you never pay employees for hours they didn't work, take these three steps and prevent timesheet fraud.
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Three steps you must take to prevent timesheet fraud
Step 1: Force your employees to clock in and out at the beginning and end of their shift. You can do this by issuing access cards. When your employee scans into the building, it will register when he got there and when he left.
Step 2: Create a digital timesheet system that your employees must fill in on their computers. When they submit their timesheet, the system will cross reference it with the times they clocked in and out of work.
Step 3: Install security cameras to monitor your employees at work. This might sound drastic but it can be extremely helpful when it comes to spotting employees who slack off during work. This can help you ensure your employees actually did work while he was at work.
These three steps will help you prevent timesheet fraud and stop it from taking down your payroll management.
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