Not having proper systems in place is the easiest loophole for payroll fraud, which is arguably one of the most common types of corporate fraud.
Payroll fraud is usually committed by an employee attempting to receive money they are not entitled to through the payroll system.
Here is a controls checklist that your business can use:
- Limit access to payroll records to trusted payroll specialists only
- Randomly and regularly inspect payroll records to ensure everything is accurate
- Create a separate bank account dedicated to payroll
- Use password-protected security measures to avoid unauthorised access to payroll records
- Use a modern time-sheet system
- Ideally, the person handling calculations should not be the same person making payments so that there is a second pair of eyes to double check.