Payroll Fraud – A Big Threat and How to Avoid It

Payroll Fraud – A Big Threat and How to Avoid It

You might consider payroll outsourcing, but because you are afraid of payroll fraud, you wonder if this is going to be the right thing to do. When you have all the necessary information about payroll fraud and you can avoid it when using payroll services, you will know that you can still outsource your payroll without the thread of payroll fraud. Here are some of the ways that payroll fraud is taking place and what you can do about it:

Ghost employer

One of the most common ways of doing payroll fraud by payroll services is the fact that they are creating a ghost employer. Meaning they are creating an employer that doesn’t really work in the business, but the money is going to someone’s account.

This is something that can be done, without the bookkeepers realizing it or even without you realizing it. Ghost employees are easy to create, if no one is checking the payroll to check for ghost employees.

Logging more hours than the workers have worked

The second way that payroll fraud is getting done is when payroll services are logging more hours to a specific worker than what the worker really has worked. They then pay the extra money to the worker’s account and receive an amount of money for doing this.

With this fraud, the worker that is getting more hours logged is normally in with the scam and is paying the payroll clerk for giving him higher salaries. This is even easier to do than to create a ghost employee, because not everyone is double checking the hours worked and the hours that were logged in. For more information visit: https://en.wikipedia.org/wiki/Employment_fraud

Ways that you can avoid payroll fraud

Not only do you need to know how payroll fraud is getting done, but you also need to know how you can avoid this from happening to your business and company. There are many different things that you can do to ensure that you aren’t losing money to payroll fraud.

The best and only thing that you can do is to monitor all the information on the payroll frequently that the payroll service in Australia has done. The more you are controlling everything, the better the change that you can see if there is any fraud done. You need to control the amounts that are paid into the accounts with the hours worked and you need to make sure that you are going to make sure that there aren’t any ghost employees on the payroll. This might take a bit of time, but this is going to save the company a lot of money.

We don’t always think about it, but payroll fraud does happen, especially if you don’t control your payroll information on a monthly basis. The more you are going to monitor the payroll services, the faster you will see if there are any problems or fraud that were done with the payroll. You can use payroll services without fraud risks, but it is better to make sure that you are going to monitor it often. Check here!

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Importance of Payroll Services in Cutting Business Costs

Despite what you might believe, there are ways to actually reduce business costs with a payroll service provider. What you need to understand is that in business there are lots of little costs and over time they can add up. It’s not always easy to reduce or cut back on business costs as there isn’t a lot of room to manoeuvre so you can’t take a drastic approach. For some, they love the idea of cutting corners as they think it’ll help in the long-term but, in reality, it does nothing for them. Instead, using a good payroll service might enable you to cut back business costs, maybe even by 40 or even 50%—in just one department!

Latest Tax Laws Prevents Fines and Fees

The importance of payroll services is all down to tax and how much money you can be fined if you don’t comply with the latest tax laws. These laws change all the time and while there might only be one or two small changes they can have a lasting impact on the entire business. You have to be very careful of these things and it’s very important to have someone who can adhere to those laws. Remember, if you are compliant with the tax laws you will have fewer fines to pay so it can help reduce costs. Payroll services are important when it comes to reducing those costs. To find out more, check out http://www.payrollserviceaustralia.com.au

Reducing Manpower on Payroll

The payroll department can be one of the most costly areas within a business and that is cause for concern. Businesses can plough thousands of dollars per year and it’s really a lot of money which a business can’t afford to lose. However, by looking at a payroll service provider you can find that you have the ability to reduce the manpower and man hours spent on payroll. Essentially, you can have a functioning payroll department but at a reduced cost which is ideal to say the least.

More Accuracy Means Less Money Lost

How much money is lost every year on overpayments to employees? The worst thing about this is that you don’t even know about them and that is essentially taking money out of your pocket. It can be very costly to any business and it’s certainly something which is causing concern. Losing money through overpayments can end up being thousands throughout the year and its money you can’t afford to lose. However, with payroll services you can actually ensure you have more accuracy which will in turn help to reduce money being lost or wasted.

Cut Business Costs

Businesses have to find simple but effective ways to reduce business costs without putting their business at risk. There aren’t a lot of ways to do that unless you lay off employees and have a drastic overhaul and even then there are no guarantees it’ll work. Instead, you have to be smart and find a way to reduce business costs in a more effective manner. A good payroll service might be one of the best solutions to this as it can reduce business costs and it’s an important avenue to look into as well.

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