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.

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. Visit for more info: payrollserviceaustralia.com.au

Categories: Payroll Fraud

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