Category: outsourcing payroll

You might consider payroll outsourcing, but because you are afraid of payroll fraud, you wonder if this is going to be the right thing to do. When you have all the necessary information about payroll fraud and you can avoid it when using payroll services, you will know that you can still outsource your payroll without the thread of payroll fraud. Here are some of the ways that payroll fraud is taking place and what you can do about it:

Ghost employer

One of the most common ways of doing outsourcing fraud by is the fact that they are creating a ghost employer. Meaning they are creating an employer that doesn’t really work in the business, but the money is going to someone’s account.

This is something that can be done, without the bookkeepers realizing it or even without you realizing it. Ghost employees are easy to create, if no one is checking the payroll to check for ghost employees.

Logging more hours than the workers have worked

The second way that payroll fraud is getting done is when payroll services are logging more hours to a specific worker than what the worker really has worked. They then pay the extra money to the worker’s account and receive an amount of money for doing this.

With this fraud, the worker that is getting more hours logged is normally in with the scam and is paying the payroll clerk for giving him higher salaries. This is even easier to do than to create a ghost employee, because not everyone is double checking the hours worked and the hours that were logged in.

Ways that you can avoid payroll outsourcing fraud

Not only do you need to know how payroll outsourcing fraud is getting done, but you also need to know how you can avoid this from happening to your business and company. There are many different things that you can do to ensure that you aren’t losing money to payroll fraud.

The best and only thing that you can do is to monitor all the information on the payroll frequently that the payroll service in Australia has done. The more you are controlling everything, the better the change that you can see if there is any fraud done. You need to control the amounts that are paid into the accounts with the hours worked and you need to make sure that you are going to make sure that there aren’t any ghost employees on the payroll. This might take a bit of time, but this is going to save the company a lot of money.

We don’t always think about it, but payroll fraud does happen, especially if you don’t control your payroll information on a monthly basis. The more you are going to monitor the payroll outsourcing services, the faster you will see if there are any problems or fraud that were done with the payroll. You can use payroll services without fraud risks, but it is better to make sure that you are going to monitor it often.

Negative aspects to be considered when outsourcing payroll

By Lukas Hebert

On January 12, 2023

In outsourcing payroll

You have been thinking of payroll services Australia but have you thought about the potential negatives surrounding it? In a way, you hear all the positives of outsourcing payroll but very few negatives. It’s understandable but with anything in modern life, there are negatives. Even with outsourcing, there are negatives but it’s important to understand them so that you understand outsourcing fully. The following are a few negative areas to think of when dealing with outsourcing payroll.

Level of Control

Something which most individuals have to think about when outsourcing their payroll is how much control they lose. Handing payroll over to a company can often be difficult in a host of ways and in a way; you are going to lose some level of control. That’s not ideal in any way but it’s a real possibility. With payroll outsourcing you absolutely have to think about how much control is being lost over payroll. Of course, every business loses control over payroll if they don’t personally handle it themselves so while it’s a negative of outsourcing, it’s not the worst thing to come out of this. Read more about negative of outsourcing payroll on https://www.entrepreneur.com/article/47340

Data Protection

You are looking to payroll services Australia to assist you with your payroll but there are a few issues that cause you to stop and think. One negatives that surrounding outsourcing has to be in the form of data protection. Data protection might not seem overly troublesome because you’re using one payroll team but there are still risks involved. If you’re using an online service you’re going to be at potential risk from hackers and scammers and that’s a major negative surrounding outsourcing. Of course, there are security procedures in place that help to stop hackers but you can never be sure how safe your data is. Learn more about effective payroll management.

A Gap in Communication

Miscommunications occur and while you do your best to avoid them, they will happen! It’s part and parcel of life. There are errors and mistakes at every turn and while you might believe you can avoid them, something still goes wrong. One of the more negative elements surrounding payroll outsourcing has to be the gaps in communication. Now, for the most part, communication isn’t an issue but there is one or two instances when communication might become a problem and that’s what you have to take into consider. It’s a drawback; and in truth, you don’t want to deal with any errors in communication. Click here to checkout outsourcing payroll  arrangements.

Is Outsourcing A Viable Option?

Sometimes, when you hear about the negatives of outsourcing payroll you start to think twice about it but, should you? In all honesty, outsourcing isn’t all sunshine and roses but nothing is in life! You are not going to find everything perfect with anything, even with outsourcing and so you have to take those into consideration to decide if it’s something you’d be interested in. A lot of people don’t think about the negatives and only focus on the positives but it’s not the smartest way to make a choice. You have to know the positives as well as the negatives with outsourcing payroll and choosing payroll services Australia.