Lots of companies around the world are facing the crunch because of the frauds which take place in their office on a day to day basis by their employees, supervisors and managers. Every penny which goes into fraud adds a dent into company’s profit.
Don’t let your business be the victim of the same situation, be very cautious towards your employees and make sure that they are accurately filling up their schedule for proper calculation of payroll and their paycheck. You can keep a record of the following things to make sure that your employees are not doing any kind of fraud in the company:
- Forgetting the payroll advance: Most of the employees take their payroll in advance and then forget that. It is always better to note down all the payroll advance your employees have taken from you so that you can do right calculation of their payroll and do not pay them extra.
- Punching for buddy: this is the most common type of fraud which takes place all around the world. This practice involves sharing your personal information with your buddy in the office and let him punch in your attendance on your behalf. In most cases, sometimes even an employee is getting paid for the day when he was on off. Electronic time and attendance system has provided solution for this problem.
- Unauthorized hours clamming: this type of fraud is very hard to detect. This happens when employees add unwanted hours on their time sheet. They show that they have been working extra in the office and reduced their lunch break etc. One has to be very careful about keeping a proper check on their employees so that they can’t bluff with extra hours.
- False expense: This type of fraud are mostly conducted by sales profile or by the people who are out on the road a lot or have the access to company’s credit card to incur their expenses. They show false bills to get extra cash from the company. Make sure that your employees keep track of all the original receipts. A company should always check the authenticity of the receipt by calling the merchant.
- Worker’s compensation fraud: no industry is safe from this type of fraud. Employees will attempt to fake an injury such as joint problem, stiff neck, back etc. to falsely claim money from you and your insurance company. This type of fraud can cause you to loose thousands quickly. One way to check the genuineness of such fraud is to have a surveillance camera in your office. You can check in your office camera whether your employees were injured in the office premises or not while reimbursing their medic claims.
If you can take care of all the above said points, you are certain to save good amount of money. The other solution to this problem is also to hire a small business payroll company, which can implement all the processes for you. This company will implement all the desired systems and also calculate your employee’s payrolls. Make sure that you hire an honest and reliable employee for your company.