COMPLIANCE
Duplicate addresses or bank account details Be aware when this happens on the same payroll or across group payrolls. The same goes for duplicate employee NI numbers. Always ask why this has happened. Members of the payroll team not wanting to let others help or take over the job Being devoted to the job is one thing; being oddly protective, however, should ring alarm bells. Address oddities If two workers who aren’t family members have the same address or banking information, investigate this. Employees living beyond their means When a worker is clearly spending more than they earn, this may be a warning sign of criminal activity. Just be careful – it could also mean they have a wealthy partner or family. Payroll problems without any reason Are there regular mistakes or omissions? Odd or unexplained changes in your
was sent to HM Revenue and Customs. When you use the RTI figures, you see what actually happened, as opposed to potentially tampered reports. Ghost / fake employees This issue haunts businesses that generally have a large payroll. Here’s how it happens: someone in payroll or human resources creates a fictitious employee, or they keep someone on the books after they’ve left the company. In both situations, the fraudster adds in their own bank details, diverting wages there. Unfortunately, we’ve even seen cases where a dead employee’s details have been used in these deceptions. Take time, then, to audit your payroll and verify employee payslips. This goes beyond a cursory glance. I recommend that while doing this, you check National Insurance (NI) numbers match current employee records. Payroll fraud red flags Here are a few things that might give the game away for fraudsters:
payroll records? These indicate a critical oversight, as well as possible fraud activity. A plan to stop fraudsters in their tracks But how do you put all this information into action? First, set out a consistent payroll process detailing how you manage payroll, timesheets or clock cards. Make sure this process uses trusted people appointed through the leadership team. When you do, this means sign-off happens at the appropriate tier of the company in question. But it’s not just about empowering senior staff. It’s about ensuring anyone can comfortably speak up if they see something amiss – even if they might be mistaken. They should, of course, report suspected fraud to a trusted line manager who isn’t linked with that employee. That way, your circle of trust is properly organised, everyone feels confident of their role in stopping fraud, and you can help one another should the worst happen. n
Payroll Technician Certificate ADVANCED The CIPP’s Payroll Technician Certificate meets the industry’s rapidly evolving requirements for knowledgeable payroll administrators.
The Advanced certificate contains the same content as our excellent Payroll Technician Certificate, but includes three extra modules covering the following areas:
● data protection and audit considerations ● automatic enrolment and pension principles ● administering salary sacrifice for payroll.
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Visit www.cipp.org.uk/PTCA for full details and to enrol today
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| Professional in Payroll, Pensions and Reward |
Issue 91 | June 2023
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