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How to Protect Your Business Against Fradulent Payroll Providers

How to Protect Your Business Against Fradulent Payroll Providers 0

Many businesses, small or big, are suffering from a different kind of pandemic today: payroll fraud. A record 27% of businesses the world over are currently under attack from this accounting fraud. While this fraud can be typically traced to workers with ill intentions working within a business, it is often advised to hire the services of a professional payroll provider.

Payroll providers are expert agencies that offer effective and safe payroll processing for businesses. While they are tasked with navigating all the intricacies involved in payroll systems, can they really be trusted with your company’s financing?

While there are reputable payroll providers like Consultants In-A-Box out there to entrust your business payroll processing, we can’t help to disclose that there have been a couple of bad eggs in the business, soiling the hard and success of good payroll outsourcing companies.

In this article, you will learn how these fraudulent payroll providers operate and how you can prevent your business from one.

Causes of Payroll Fraud

Fraudulent payroll providers cripple the finances of many businesses through the following methods:

  • Ghost employees - If your business is fairly large, it is tasking to know all your employees by name or the actual number of your staff size. Fraudulent payroll providers exploit this common flaw by creating a fictional worker(s) and inputting their information along with genuine workers on the payroll list. The company ends up paying that ghost worker’s salary which is collected by the payroll providers. In some cases, these providers may use the names and details of former employees to trick businesses into paying them.
  • Falsification of timesheets - Some fraudulent payroll systems deliberately increase the number of work hours by a staff (whom they must’ve connived with) to have a bigger paycheck.
  • Payroll impersonation - Fraudulent payroll providers may ask your employees to update payroll data through a phishing website made to look genuine. They’d steal this information and make alterations to it on the genuine website.
  • False commission - It’s commonplace to see some businesses giving commissions to employees. A deceitful payroll provider can deliberately increase the commission of workers to make them earn a larger pay. This stunt is pulled by illegally increases the target sales and other marketing bonuses.

With the aforementioned ways in which businesses can be affected by fraudulent payroll providers, how do you ensure your business is well protected?

How To Protect Your Business From Fraudulent Payroll Providers

The steps below will guide you on how to prevent payroll fraud from scandalous providers:

  • Properly vet payroll providers. This is the important step to make before hiring a payroll provider to handle your company’s payroll. Ensure that they’re adhering to the regulations of the SEC and can also provide proof of their liability insurance. Also, ensure that their customer service is top-notch. Your business deserves nothing short of the best.
  • Check out reviews. When selecting a payroll provider to work for your business, you should the internet for user reviews. Reviews reveal a lot about a payroll provider you’re planning to work with.
  • Request for further certifications. You need to request for further verification from governmental agencies before hiring a payroll provider.

We at Consultants In-A-Box take pride as permanent solutions to your business’ payroll problems. We combine professionalism with a wealth of experience to deliver the very best for your employees and business. Do reach out to us today.

Six Payroll Challenges For Small Restaurants

Six Payroll Challenges For Small Restaurants 0

Managing a small restaurant is no easy feat. One would be dealing with several things all at once; coming up with strategies to drive sales, training employees on great customer service, and implementing customer reviews, and a more pressing issue: payroll processing.

Many small restaurant owners are having a difficult time meandering through the complexities of managing payroll, unlike other small businesses. You can’t afford to make mistakes while managing payroll. Mistakes often led to paying penalties which may affect your business.

You don’t want that.

In this article, we discuss some of the various payroll challenges for small restaurants and cafes.

Minimum Wage and Overtime.

Since 2009, the federal minimum wage has remained $7.25 per hour. However, states, cities, and counties have implemented a much higher minimum wage for employees. If the state and the federal minimum wage is different in the state your business is situated, you’d have to pay your employees a higher rate.

In the event that an employee exceeds 40 hours per week, he or she must be paid one and a half times more than their regular pay per hour.

When it comes to overtime, a lot of restaurant owners get it wrong. For some employers, calculating overtime fees of workers is still a challenge. There’s a seemingly overtime wage difference between tipped and untipped employees.

  • For tipped employees. The overtime wages for a tipped employee is ascertained from the full minimum wage.
  • For salaried employees. The overtime wages for a salaried employee is calculated on how his or her salary is set up and how many hours they worked.

Meals as Fringe Benefits.

Most restaurants offer meals to their workers, especially kitchen staff, who are always on duty. The IRS regards this as a fringe benefit. As a restaurant owner, you have the ability to exclude these meals from your worker’s wages. As long as the meals are provided to your workers on the premises, and they don’t go elsewhere to look for food, you can deduct the meals.

Most times, restaurant owners get this mixed up and this poses a problem for their business. However, it would be unreasonable to place charges on doughnuts, coffee, or any other meals taken by employees working overtime.

Too Many Forms.

Another payroll challenge restaurant owners face is the number of paperwork piling up on their desks daily. Having to sort out of the onboarding process for new employees, processing payroll, and of course, staying on the side of the law regarding tax laws.

When you consider the different wages of workers, expenses made, and the revenue flowing in, this can pose a serious payroll challenge for owners of small restaurants. It is highly recommended that you use payroll software or hire the services of professional payroll providers to handle all the complexities of tax and payroll.

Possible Discrimination on Job Applications.

As an employer, there are certain questions you’re prohibited to ask a potential employee, in order to not face lawsuits. Some of them include:

  • Asking about previous arrests or convictions.
  • Asking about their age.
  • Religious holidays
  • Disabilities

Offering Parental Leave and Paid Sick.

One payroll challenge small restaurant owners face is the understanding of how sick and parental leaves work. An experienced payroll provider is what your business needs if you cannot handle this issue yourself.

Payroll Fraud.

Payroll fraud is one of the crippling challenges of small restaurants. If unchecked, your business could take a serious hit. Some employees with ill intentions may illegally log in time which they never appeared on their timesheets. Handing out this responsibility to a payroll provider will save your business in the long run.

Should Small Businesses Outsource Payroll

Should Small Businesses Outsource Payroll 0

It is commonplace to see small business owners tackling a lot of issues that demand equal attention, and at the same time. Coming up with strategies to boost business sales and productivity, prepping your staff, and taking charge of your finances—especially managing your payroll—can be exhausting.

That’s why businesses are now leaving this task to professional payroll providers. If you’re wondering whether it’s a wise business decision for your small business to outsource payroll, the answer is a resounding yes.

In this article, we will discuss what payroll providers are and the benefits of outsourcing one for your small business.

Who are Payroll Providers?

Payroll providers are expert agencies hired by businesses to handle their payroll processing in a professional and hitch-free manner. It is very vital, even as a small business owner, to outsource payroll.

Benefits of Outsourcing Payroll.

Outsourcing your payroll to payroll providers come with many benefits. Some of them include:

Increased productivity

Time is money, even for small businesses. And when it comes to payroll, it is a time-draining exercise. Having to calculate a worker’s allowances and taxes, deductions, overtime, paid time, and ensuring that state and federal regulations are strictly adhered to can be really stressful.

However, when you outsourcing payroll to an expert provider, like Consultants In-A-Box, you as a small business owner will have more time to focus on other strategic tasks that will boost your bottom line. Also, this will also aid the employee in your accounting department to channel their energy to another productive venture for your business.

The staff size of your business doesn’t matter. When you think about the time you’d spend in preparing W2s, the importance of outsourcing it to payroll providers becomes crucial.

Reduced mistakes

When it comes to payroll processing, mistakes may arise, especially when it is done in-house. Payroll mistakes impact your workers and your business. The IRS also frown frowns at payroll mistakes and would not waste time issuing penalties to you.

As a business owner, you’re responsible for whatever happens, good or bad. And that’s why it’s important to contact your payroll to experts who are equipped with the knowledge of federal and state regulations and the changes in tax rates. More so, you need a payroll provider that will be able to implement these figures in your payroll effectively.

Team of experts

Because new tax laws and regulations are made almost every year at the state or federal levels, your business must continue to ensure that it is on the side of the law. This is why you should outsource payroll.

Payroll providers are experts in the business of accounting and HR. These experts are well aware of the ever-evolving intricacies of payroll, and you can always count on them.

Eliminates payroll fraud

Currently, payroll fraud affects 27% of businesses worldwide. It is reported that businesses with less than 100 employees are more likely to be affected. Even if you trust your workers, there’s a potential risk of being defrauded from identity fraud, embezzlements of funds, ghost employees, illegal filling of timesheets, and many more.

You may not have the time to properly and closely monitor your workers in the accounting department. But you can invest in a more sustainable solution: hiring payroll providers.

Reduced costs

When you think about processing payroll in-house, you’d have to factor in a lot of things. Some of them include calculating payroll, printing, disbursing paychecks, keeping up with tax laws, generating reports, etc. This often results in spending more money than you bargain for.

When you compare it with payroll outsourcing costs, you’d see that it is more cost-effective to hire a payroll provider.

Consultants In-A-Box is a leading payroll provider, tasked with delivering the best payroll solutions for small and large businesses. You’re just a click away from transforming the financial aspects of your business. Reach out to us today.