Instructions

Learn About Fraud

1

Know that payroll fraud is a clandestine activity and is committed for some type of financial gain.
2

Understand how fraud can affect your. Unless the owner of the business is in charge of payroll and computing, there's always the possibility of payroll fraud occurring.
3

Keep in mind that occupational fraud occurs in many forms. Small businesses may have a lack of accounting controls, which allows an employee to manipulate the payroll to benefit themselves (or use an accomplice).

Identify Fraud

1

Make a commitment to review payroll information on a regular basis. Don't rule out payroll fraud simply because you have been working with the same person for a long time.
2

Trust your instincts. Fraud can occur at any time, and investigating suspicious activity can help you discover fraud in its early stages.
3

Be aware of cyber-security, and use it to your advantage. Keep your payroll information in password-protected files, and don't write passwords down or share them with unauthorized employees.
4

Look for an increase in checks which have been presented for payment.
5

Check your bank statements for unfamiliar charges. Consider having them sent to your home for your review before you surrender them to your payroll professional.
6

Review your business bank account online at least twice every month.

Investigate Payroll Fraud

1

Call local law enforcement if you discover payroll fraud.
2

Consider hiring the assistance of a Certified Payroll Professional, or CPP.
3

Make an action plan to deal with future cases of payroll fraud with the help of a professional, and begin researching a reliable payroll processing vendor.

Prevent Payroll Fraud

1

Make employee background and criminal record checks standard during the hiring process.
2

Prevent fraud by outsourcing your payroll administration. By hiring a payroll processing adviser, you can prevent payroll problems.
3

Choose payroll processing companies with care. Vendors should demonstrate a proven track record with company payroll accounts and provide quality services, including tax, payroll, and bookkeeping administration.
4

Keep your payroll duties split between two different employees. Have your employees work on data input and review.