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.
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.
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