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

Being with employees during personal tragedies

This is perhaps the ultimate test of HR’s human face. There are almost no employees in this world to whom one or another kind of personal tragedy doesn’t happen while at work, or someone who weathers it without letting it come in the way of work.

Work and life –two sides of a coin

Life and work are two sides of a coin; one doesn’t exist without the other. People work not just to pay bills. They also work for a sense of attainment, satisfaction and achievement. What they do in their work area reflects on their personal lives, and vice versa. So, when our personal and professional are intertwined, how does HR help employees cope with a personal tragedy? A personal tragedy may be of varying dimensions and depth, but its impact is sure to be felt on the employee, and this reflects on her work, which directly impacts the organization.

Common personal tragedies

The most common personal tragedies in an employee’s life are separation and sickness. Separation can be of any type –divorce or death. It could also be about having to stay away from a beloved partner or parent or offspring due to difference in the job location.

Sickness of a beloved one is tragic. To see a dear one, be it a parent, life partner or child, or a close friend suffer, is very painful. It causes us to think about it all the time, and leaves us with a sense of grief and helplessness.

Death of a beloved one is very difficult to overcome, at least in the short run. True, time is a great healer, but then, inherent in that adage is that fact that it takes time to heal. It is in circumstances such as these that HR needs to show its humane side. It can offer various options to affected employees.

How can HR help?

HR can allow tragedy-stuck employees freedom to avail leaves that are in excess of what is permitted by company policy. It can allow them to work from home. It can allow them to take time off to attend to sick people at home or a care center. Or it can allow them to take off may be two days in a week to meet their beloved in a distant place and allow them to work from there.

This is perhaps the ultimate test of HR’s human face. There are almost no employees in this world to whom one or another kind of personal tragedy doesn’t happen while at work, or someone who weathers it without letting it come in the way of work.

Work and life –two sides of a coin

Life and work are two sides of a coin; one doesn’t exist without the other. People work not just to pay bills. They also work for a sense of attainment, satisfaction and achievement. What they do in their work area reflects on their personal lives, and vice versa. So, when our personal and professional are intertwined, how does HR help employees cope with a personal tragedy? A personal tragedy may be of varying dimensions and depth, but its impact is sure to be felt on the employee, and this reflects on her work, which directly impacts the organization.

Common personal tragedies

The most common personal tragedies in an employee’s life are separation and sickness. Separation can be of any type –divorce or death. It could also be about having to stay away from a beloved partner or parent or offspring due to difference in the job location.

Sickness of a beloved one is tragic. To see a dear one, be it a parent, life partner or child, or a close friend suffer, is very painful. It causes us to think about it all the time, and leaves us with a sense of grief and helplessness.

Death of a beloved one is very difficult to overcome, at least in the short run. True, time is a great healer, but then, inherent in that adage is that fact that it takes time to heal. It is in circumstances such as these that HR needs to show its humane side. It can offer various options to affected employees.

How can HR help?

HR can allow tragedy-stuck employees freedom to avail leaves that are in excess of what is permitted by company policy. It can allow them to work from home. It can allow them to take time off to attend to sick people at home or a care center. Or it can allow them to take off may be two days in a week to meet their beloved in a distant place and allow them to work from there.

No charity, this!

The bottom line is, it should make sure it does everything to make the employee feel as much at home as possible, without affecting work greatly. Of course, such employees are not expected to give 100 percent; the shortfall can always be made up by smart delegation and distribution. None of these needs to be done as charity, because by showing its considerateness, HR helps the distressed employee cultivate a greater sense of loyalty to the organization.

The bottom line is, it should make sure it does everything to make the employee feel as much at home as possible, without affecting work greatly. Of course, such employees are not expected to give 100 percent; the shortfall can always be made up by smart delegation and distribution. None of these needs to be done as charity, because by showing its considerateness, HR helps the distressed employee cultivate a greater sense of loyalty to the organization.

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