A ghost employee is one who exists on paper but does not exist in the workplace. Ghost employee practices can cost employers hundreds to thousands of dollars each year. Ghost employee frauds effect the bottom line of businesses just as any other type of theft does; and can occur in many different ways. Some of the most common ghost employee practices are:
- Payroll clerk adds a non-existent (ghost) employee into the payroll system, sets up a direct deposit account for the ghost employee, and then uses the funds for themselves.
- Payroll clerk leaves terminated employees on payroll so that he/she can keep the former employees paycheck for personal use.
Some ghosts actually do exist; just not to the number of hours that you are led to believe they do. Common practices for ghost employment hours are:
- Workers show up at the job site, clock in and then go off site. They are clocked in, but not actually working. These are ghost hours.
- Ghost employees can also clock in at multiple locations, charging you for hours worked at two places during the same time frame of hours.
So how do you avoid these haunting schemes? HR Strategies can help in identifying payroll processes and controls to avoid ghost employees. Our HR Consultants and Payroll Specialists are here to answer any of your questions and concerns regarding Ghost Employees.
For assistance, call us today at 770-339-0000