Understanding payroll fraud and preventing it

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Payroll fraud is a matter of serious concern to the people affected by it, the organization in which it happens, and to the economy overall. It is estimated that payroll fraud is involved in around an eighth of all workplace frauds and makes up about a twelfth of all occupational frauds worldwide. On average, a payroll fraud case results in loss of $ 48,000 and avoids detection for about three years. Each payroll case fraud costs around $ 72,000.

It is rather unfortunate, but expected that small organizations bear the brunt of payroll frauds. The reason for this is not far to seek: They usually lack the requisite fraud detection mechanisms, making them particularly susceptible to payroll fraud.

Common methods for preventing payroll fraud

Many organizations take a few steps to prevent payroll fraud. Some of these include limiting access to the information relating to payroll, engaging different people for different levels and areas of payroll functions so that it acts as some kind of checks and balances system, conducting thorough background checks of the employees in charge of payroll functions, checking ghost employee accounts, installing automated clearing house (ACH) filters, and a few others.

Section 404 of SOX Act

Additionally, the Sarbanes Oxley Act, which was a landmark legislation aimed at putting checks on large corporate frauds, also requires companies to take a few steps to prevent payroll fraud. Section 404 of the SOX Act requires a few stringent steps:

  • Companies have to include an Internal Control Report in their annual financial reports stating that the management takes responsibility for implementing what SOX terms an “adequate” internal control structure
  • Management has to assess the effectiveness of this internal control structure
  • Deficiencies and discrepancies in these controls must be reported
  • These declarations by the management have to be attested by external registered auditors.

A complete discussion of the ways of preventing payroll fraud

A thorough understanding of all the elements of payroll fraud and the ways of preventing them will be discussed at a webinar that is being organized by TrainHR, a leading provider of professional trainings for the human resources industry. At this webinar, Dayna Reum, who is Payroll Tax Manager at PetSmart Inc. and has been heavily involved in the payroll field over 15 years; will be the speaker.

To get an in-depth idea of payroll fraud and to understand the ways of dealing with it, please register for this webinar by visiting TrainHR

Tools for detecting payroll fraud

The purpose of this session is to help participants gain an understanding of the legal rules around detecting and deferring payroll fraud. Dayna will review tools that companies can use to detect or deter fraud with immediate effect. She will take up Section 404 of the SOX Act for detailed discussion and examine the requirements in it that publicly traded companies have to meet. She will also explain how the provisions of the Act are designed to check payroll fraud.

This webinar will be of high value to professionals involved in payroll functions, such as Payroll Professionals, Compensation Professionals, HR Professionals, and Benefit Professionals. In the course of this webinar, Dayna will cover the following areas:

  • Payroll Fraud Statistic’s-How big of a problem is it?
  • How does payroll fraud occur?
  • Preventing Payroll Fraud
  • Internal Controls
  • Tools (Process Maps, Business Continuity Plans, Process Documentation)
  • Audits
  • Sarbanes-Oxley 404 Requirements
  • Ethical Business Practices.

Enhance the effectiveness of being a payroll manager

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A payroll manager is essentially responsible for managing the payroll for the employees. The payroll manager has to ensure that the employees are paid on time, in accordance with their pay scale, and also in a legally compliant manner. Usually, the payroll manager manages teams of payroll staff, depending on the size of the organization. Many payroll managers also manage multiple payroll services, when they are managers in organizations that provider payroll services.

Most payroll managers have the general responsibilities, to:

  • Create and implement payroll policies and procedures
  • Advise the organization or its employees on tax and pay laws
  • Analyze financial data and report on them
  • Supervise and train the payroll team
  • Manage computer software and systems
  • Ensure that payroll practices meet compliance regulations.

Payroll managers usually highly qualified. They are normally either CIPP’s or IAB’s. In addition to possessing these qualifications for carrying out their functions; payroll managers need to have a number of important qualities. They are expected to be good at:

  • Team management
  • Time management
  • Problem solving
  • Paying attention to detail
  • Dealing with and calculating numbers
  • Computer systems

An effective training session on finessing payroll management functions

Want to know more on how to carry out this important function of an organization’s Finance department? Want to finesse your managerial skills and become a more effective payroll manager? Then, a webinar that is being organized by TrainHR, a very popular provider of professional trainings for the HR industry, is what you need.

Dayna Reum, who is the Payroll Tax Manager at PetSmart Inc. and has been heavily involved in the payroll field over 15 years, will be the speaker at this webinar. All that you need to do to gain the immense knowledge that Dayna brings into payroll management and finesse your skills and knowledge and become a more successful payroll manager is to register for this webinar by visiting TrainHR

This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI).

Helping to face challenges

Dayna will address the many challenges that Payroll Managers at all levels face at some point of their careers. She will help them overcome these by offering a tool kit of skills which they can use in a payroll team. This kit is useful for the beginner and the experienced payroll manager alike.

Participants of this webinar will be able to overcome the challenges of being a payroll leader/manager. The aspects of leading and managing a payroll department will be taken up for detailed discussion. The speaker will explain the responsibility of a payroll manager, along with how to build a strong payroll team, which will be particularly useful for personnel such as Payroll Professionals, Compensation Professionals, HR Professionals and Benefit Professionals.

Multiple skillsets for handling payroll management

Dayna will also equip the participants of this webinar with many of the skills they need for being successful at their job of payroll managers. She will show how they can properly prioritize tasks and analyze processes to effectively improve the payroll processes. This training will help participants look beyond just firefighting in their role as payroll managers. The way of communicating more effective and organizing effective meetings that give out the best results, as well as how to be more effective, are some of the other outcomes of this session.

At this webinar, Dayna will cover the following areas:

  • Responsibility of a Payroll Manager
    • Suggestions of a Payroll Manager
    • Primary Duties
    • Building a Strong Payroll Team
  • Payroll Specific Management Skills
    • How to prioritize tasks and/or issues
    • Following state and federal laws and how to keep up to date
    • Reporting Compliance
  • Management Tool kit
    • Fixing inefficient processes
    • Building strong relationships with vendors and/or other departments

https://www.ucas.com/ucas/after-gcses/find-career-ideas/explore-jobs/job-profile/payroll-manager

5 attributes for employee assistance program

An Employee Assistance Program (EAP) is a program that an organization implements to ease some of the personal problems faced by its employees. An employee assistance program is largely voluntary, in that it is not mandatory either for organizations to implement it, or for very employee to avail it.

employee assistance program - TrainHR

According to the Employee Assistance Professionals Association, here’s what to look for:

  1. 24/7 phone response. Seek out providers that have trained counselors on duty answering a toll-free phone line at all times. Avoid EAPs that require users to navigate an elaborate phone tree before reaching a counselor.
  2. Confidential services. Licensed, professional counselors should deliver assessments and face-to-face counseling sessions in safe, private and confidential offices. Make sure there are enough counselors in your area to deliver timely services in both urgent and nonurgent cases.
  3. Referral support and follow-up. The EAP should assist employees by providing referrals for long-term or specialized care based on assessed needs, recommended treatment and employees’ financial resources. The EAP should provide follow-up and ongoing support for employees.
  4. Crisis intervention. Will EAP counselors come to your facility if there’s an emergency, such as an incident of workplace violence? Good EAPs can provide counseling for traumatized employees. They can also help management coordinate emergency-response plans.
  5. Substance abuse expertise. Given their disproportionately great impact on the workplace, drug and alcohol abuse problems often represent the bulk of EAP cases.

Is a disagreeing employee also disloyal?

Many organizations, especially those that tolerate free expression, are bound to come across employees who show disagreement on some or another issue. Many people tend to think that such employees are disloyal. Are disagreement and disloyalty synonymous? Should an employee who disagrees with the company’s management be considered disloyal?

No connection with each other

Although there is a tendency to classify the disagreeing employee alongside the disloyal one; let us first understand what these mean and whether they are mutually exclusive.

A disagreement is when the employee feels that the management is not taking the right decision. This can be over just any aspect of the organization. That employee may not like the office policy on casual clothing. Or it could be on something as important as the direction the business is taking. On such occasions, the employee may feel tempted to come out openly against the management and demand that it change its policy on clothing. Or the employee may say that a particular senior manager’s actions or management style is seriously flawed.

All that this employee is doing is expressing his viewpoint. It in no way means that he is acting against the interests of the organization. The only sticking point is that his viewpoint may not be in consonance with that of the management. Should such behavior call for axing the employee? Not really, because there is enough scope for the management to talk it out with such an employee and sort out the differences.

Disloyalty is more dangerous

When an employee is disloyal, it means that he is doing something against the interests of the organization. Such an employee may not at all disagree with any of the organization’s issues, but may be working against it at its back. For instance, such an employee could be agreeing with everything that the company is doing, but could be working clandestinely in letting out its secrets to its competitor. Or he could be working part time for a competitor silently. Undoubtedly, such an employee is more dangerous than one who voices dissent, but has done nothing against the organization, and still very much aligns his own interests that those of the organization.

HR’s role

The HR has a very important task on its hands in dealing with such employees. HR has to decide if the disagreeing employee is having a genuine grievance against the management. The best course of action would be to bring both sides together and talk to them. This goes a long way in helping to identify areas of disagreement and settle issues. On the other hand, the disloyal employee, when he is found out, has to certainly be dealt with more seriously.

Reference:

http://hrringleader.com/2012/07/18/loyalty-and-disagreement-how-to-deal-with-your-leader/

 

Contact Details

TrainHR
webinars@trainhr.com
http://www.trainhr.com
Phone:800-385-1627
Fax: 302-288-6884
43337 Livermore Common | Fremont| CA | USA | 94539

Factors that go into promotions

Promotions are very important, no matter what the position is and what the organization does. Like termination at the other end; promotions are yet another delicate area for HR. This is another of the organization’s tasks for which HR, completely unfairly, ends up getting muck in the face for very little fault of its.

Limited role; unlimited blame

Why are promotions such a pain for HR? Mainly because most employees perceive HR to be behind them, which almost every other employee invariably thinks are unfair. This is the usual tale of virtually any organization, despite the fact that HR only does the paperwork and has only a limited role in deciding on a promotion. Most employees that don’t get promoted fail to see that a lot of factors go into promotions. They tend to see promotions as nepotism, favoritism, appeasement and politics.

Good promotions, bad promotions

They are wrong partly and fully on both counts –partly, in their belief about what goes into promotions, and fully, about poor HR’s role in it! The one major reason for the grouse against promotions is that it involves competition from peers. Obviously, when many people are working on a project together, it is natural that there are good performers and bad performers. When team members who are performing way above the rest get promoted, there could be nothing more than jealousy. At the other extreme, when a good-for-nothing doesn’t get it, there is a sense of vindication.

The problem arises when team members are almost identical in their performance, and one of them gets promoted and the others don’t. It is natural that this generates a lot of passion and heat. This is something that needs to be put in perspective, because it is a fact that for every fair promotion; there is a bad one as well.

Organization has to decide

Often, it is not possible for organizations to always be perfect in awarding a promotion, even if the assessment of the employees is. Many factors, most of them unknown to or unseen by the employees, go into promotions. For instance, it may be facing a financial crunch because of which it will be appropriate to promote only one of the employees, although others may have been nearly as good. When an organization decides to limit the number of promotions, it is certain to give rise to bad blood. The organization that does this is obliged to take the others into confidence and explain the matter. This is good for its own reputation, as much as it is for retaining employees who may otherwise quit in disappointment.

Now, HR comes in!

Of course, there is always the existence of a wrong promotion. The organization could be promoting an average employee for its own ulterior reasons, such as the ones we saw in the beginning. Whatever may go into promotions, it is important to strike a balance, so that the organization doesn’t end up losing either its name or its employees. Now, that is left to HR to take care of!

Reference:

http://hrtests.blogspot.in/

 

Contact Details

TrainHR
webinars@trainhr.com
http://www.trainhr.com
Phone:800-385-1627
Fax: 302-288-6884
43337 Livermore Common | Fremont| CA | USA | 94539

Employee empowerment is vital for organizations

An organization that believes in empowering its employees is bound to be a happier, perhaps even a more profitable one. What is employee empowerment? As the term denotes, it is empowering the employee to take decisions flexibly and in a less bureaucratic manner.

An organization that facilitates employee empowerment is one that has given its employees more choices in relation to stretching themselves at work. It does not believe in laying out strict boundaries at work. Employee empowerment is different from employee engagement to a degree, because while employee empowerment is about actually giving employees the power to take decisions; employee engagement, while making employees feel good about being part of the organization, does not necessarily facilitate employee decision-making.

Why it is important?

Employee empowerment is very important for organizations for a number of reasons, and all these contribute well to the company’s growth chart. When employees feel that they are part of the decision process and that this decision has its rewards; it is natural that they will associate themselves more strongly with the organization’s decision-making, as well as its very culture.

Points of empowerment

An organization that believes in employee empowerment has to approach this area with some points in mind. It should first decide which of its employees it must empower and how much. This should perhaps be the first important point of empowerment, because when there is no clarity about this point; the idea of empowerment falls flat. If the employee who is not empowered to take decisions takes decisions; it can be disastrous. Likewise, when employees who are empowered to take decisions don’t, it could be equally bad for the company.

Moreover, the organization should also decide how much authority each empowered employee carries. This should be clearly defined, and care should be taken to ensure that employees neither overstep their authority nor fail to act when required to, for fear of being censured or prosecuted.

The organization has to make clear what accrues from employees’ empowerment and decision making. It should perhaps provide a clear list of do’s and don’ts. This will help to avoid confusion as to the nature and extent of decision-making. Further, if the organization provides a copy of its balance sheet to empowered employees, it will bring about a sense of accountability, because it can show how much the company earned or lost during empowerment.

Having given this list; the organization can take up training for its participating employees. It can periodically train such empowered employees in various aspects of decision-making. This will help such employees understand their role and the limits of decision-making, as well as save the organization any problems from wrong empowerment.

Reference:

http://www.snellingnj.com/blog/bid/54298/Employee-Empowerment-The-Key-To-Company-Growth

Contact Details

TrainHR
webinars@trainhr.com
http://www.trainhr.com
Phone:800-385-1627
Fax: 302-288-6884
43337 Livermore Common | Fremont| CA | USA | 94539

To what extent can HR control employee turnover?

You’d think that for an organization that wants to do better (how many wouldn’t want to?); employee turnover should be one of the most feared phrases with HR and management. This is so because no organization likes to lose people.Aren’t its people an organization’s greatest resource? How much role does HR have in preventing employee turnover?

Some need to be sent out

But wait a minute. There is an exception. What do you do with a bad employee who hangs around and HR is powerless to do something about it? Some employees stick to an organization because the management has no way of throwing them out. You can only wait for the time she or he leaves, and throw a party in jubilation when such an employee finally quits.

When good employees leave

This is really tragic for the organization. When an exceptionally good employee wants to leave, HR and management can try their best to retain her. But if her mind is really made up and she is not going to stay back, HR can only wave a reluctant goodbye.

Those who leave after serving a purpose

This is the third type of turnover. There are instances when a really good employee wants to leave after a specific career objective is realized. They may be in the organization for a point of timeto hone his or her expertise, after which the organization may not have anything of significance for them. Here too, HR may not be in a position to keep an employee who knows exactly what she wants and wants to move on.

Other type

The final type of turnover is one that presents HR its biggest challenge. It is one in which a honcho would have been hired to steer a company out of the woods. For such a person, the motivation for acceptance of the job would be the kick that he gets in lifting it out of the disaster and putting it on the road to recovery. So, once he oversees the business continuity program, how much willingness would be there in continuing with the organization? Such high-octane people are fueled by challenges, and the moment they fulfill one, they like to move on to the next. It is in retaining such employees beyond their purpose that HR has a challenge. It has to discuss with management about taking steps for keeping such a highflyer.

Reference:

http://www.hrbartender.com/2010/recruiting/examining-employee-turnover/

Contact Details

TrainHR
webinars@trainhr.com
http://www.trainhr.com
Phone:800-385-1627
Fax: 302-288-6884
43337 Livermore Common | Fremont| CA | USA | 94539