Occupational Fraud is broken into three categories:
- Asset Misappropriation (the most common)
- Corruption
- Financial Statement Fraud
Let’s look at an example of occupational fraud affecting payroll and how your business or organization can avoid this common crime.
Time Stealing: Let’s take a look at an employer with 5 employees, each of which overstates their daily time by 15 minutes. We will also assume they each make $14/hour for this example.
If you multiply the impact of the gross wages plus the payroll taxes, the amount of money stolen due to time stealing would be approximately a $5,000 loss.
If we use the same assumptions, but increase the hourly rate to $22/hour, the approximate loss would be $8,000 annually.
SOLUTION: We highly recommend organizations use an automated timekeeping system such as CDS Timekeeper.
The most frustrating thing about this one is that it is 100 percent avoidable. Using our Payroll Services and our automated timekeeping system is more critical now than ever before.
