Are Ghosts of Employees Past Haunting Your Bottom Line?
December 23, 2014
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.
- 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.