Fight against payroll fraud

Brooks Consulting Private Limited, the payroll services in India comes up with a new topic payroll fraud. This is one of the major frauds which exist in Payroll Processing. You should aware about such discrepancy. It is one of the top sources of accounting fraud.

Payroll Fraud actually happens in 30 percent of Businesses. It occurs mostly in small size organizations with less than 200 employees rather than big corporate.    

 Anyone can do payroll theft at any point of time. We cannot prevent it, but it is possible to catch such theft. There are mainly two types of payroll fraud. One is time card falsification. Second one is “ghost employees” and the third one is Employee misclassification. Employers cut down the salaries of employees and added in their own accounts. It is known as time card falsification.  

In the office, when you notice that any employee is paid more than his/her salary and employee is fictitious then you are witnessing payroll fraud. It is the moral duty of every employee to take suitable action if he or she finds such discrepancies in the system. Reporting the fraud is important so that management can determine whether such faults exist in the system. You can report payroll fraud if you know whom to contact and reporting appropriate information. In the third type of fraud, employers declared employee as a contracted supplier so that they can avoid payroll tax, bonus of employee and other funds. These mistakes should be reported at the right time and to right authority.

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You need to gather information about suspected fraud like names of involved employees, nature of fraud, duration of fraud, amount and how you came to know existing fraud in the system.

Contact the manager who is not involved in such payroll fraud, the person who is trustworthy. Take manager away from the office and sit down with him in a private place, provide him complete information about the fraud and if possible the details. 

With the help of a manager, call the local CBI Office in your area. This agency investigates payroll fraud with strict protocols. You have to provide the CBI representative with as much information about the fraud, including name, address and contact details of the company, name of the culprits and type of fraud.

In the end answer all questions honestly and accurately. The best solution to keep checking such frauds is to reconcile your payroll with someone other than the person who runs your payroll.

There are so many Service providers who manage Payroll processing. You can check your payroll anywhere. It only cost you some money.