Thursday, July 6, 2017


Ghost Employing: Fraud Prevention



According to the U.S. Small Business Administration, there are 28 million small businesses in America that provide 55% of all jobs.  Since 1982, the number of small businesses has increased by 49 percent.  Imagine now, you’ve worked hard and spent countless hours each week locked away from friends and family to create your own small business.  It’s grown to a handful of employees and you contract out or hire a manager for your payroll services which, in turn, allows you to focus more on growing the business, instead of the administration side.  A year or two down the road, you realize money isn’t staying in the business like it once was.  You decide to check in on your payroll processes and realize your company has sixteen employees, but you send out paychecks to twenty-two employees.  You decide to investigate, only to find out you’re paying ghost employees. And to top it off, your payroll manager is skimming off the top and bulking up their own salary without telling you.  If this happens, you’re not the first business owner that has had funds embezzled from them via a payroll fraud scheme.

The estimated cost to employers related to payroll fraud is nearly $3 trillion dollars according to Ceridian, a human capital management company.  The median amount lost per fraud event is $72,000, an amount that could cripple most small businesses. 8.5% of workplace fraud is related to payroll processes and the average time it takes to discover a payroll fraud is 24 months.  There are also other types of payroll fraud other than ghost employees:

  • Falsified hours and salary occurs when employees say they work more hours than they actually do to increase their take home salary.  Sometimes managers can give preferential treatment to employees they favor or employees who give them cash in return.

  •           Commission schemes occur when individuals fake the number of sales made so they can increase their overall salary.  If employees are responsible for turning in their own sale sheets, they can easily fabricate the numbers to give them a higher return of commission.

  •       False workers’ compensation claims happen when employees fake injuries to collect disability payments.  In some cases, the employees will claim disability from one job while working another.
  •       Ghost employees refer to someone that is on the payroll, yet not an actual employee. Ghost employees can take on several forms:

·      Disgruntled Payroll Manager: If the individual who handles your payroll system doesn’t believe they are getting their fair share, it is relatively easy for them to fabricate payroll records and collect the funds themselves.

·      Multi-Employee Fraud: In complex payroll systems, one employee will be able to add new employees, but another must sign off on their checks.  These two employees will get together and collude to falsify time sheets.

·      Family/Friend Compensations: An employee creates a payroll account for a friend or family so they can receive a paycheck and share the funds.


Small Businesses have a couple of different routes in protecting themselves from payroll fraud.  The first is hiring professional auditors to come in and look at the business books and make sure all the financial aspects of the company are being done in a legal manner.  Professional auditors work with their client to uncover any fraudulent employees and can be valuable assets for any business.  However, many of these auditors can be expensive, in both the financial investment and the time commitment.  When these auditors come in, they can occupy work space, pulling employees from their current projects to discuss previous ones, and even lower employee morale, if the employees find out management brought the auditors in because they do not trust them. 

That being said, not all small businesses can afford to have yearly audits done, so here are some key steps the business owners themselves can do to prevent payroll fraud.

·      Separate payroll duties for preparation, disbursement, and distribution.  The individual that creates the employee database and puts in their salaries, should be different from the person that prints up and signs the check.  You can also decrease the likelihood by implementing direct deposit.  To change it up, once or twice a year hand deliver your employees' checks if possible, to make sure no one is trying to skim money from you.

·      Evaluate HR policies and make sure staff is up to date on adding/removing employees.  By being diligent and removing previous employees' information from the dataset, you make it much more difficult for former employees' information to be used for ghost employment.

·      Make it harder to falsify time sheets by implementing automated time tracking for employees to clock in and out.  This can be as sophisticated as swipe cards with GPS tracking software placed in them, or as low-key as a security camera at the timesheet box that takes snapshots of the time when employees check-in and out during the work day.

·      Lastly, the owner themselves, or a trusted advisor, can run internal audits on the payroll system.  These are key points to be on the lookout for:
o   Deceased person’s or previous employee’s social security numbers.
o   Paycheck without any state or federal tax deductions.
o   Employee ID numbers that are much higher than those of legitimate employees.
o   Multiple direct deposits going to same bank account.
o   Multiple checks being delivered to the same address.


Payroll fraud can be debilitating to a small business and run even the most successful ones into the ground.  But, by taking a few steps and implementing some standard security and business procedures, businesses can drastically reduce their likelihood of being taken advantage of and losing funds to a payroll scheme.

Sunday, July 2, 2017






Easy Time Clock shines a spotlight on on employee, Zachary Wright. Read his exclusive interview where he discusses working at Easy Time Clock and how he defines success. 


What three traits define you?
  
Allocentric, Conscientious, Empathetic 

What is your personal philosophy? 
Please be kind, rewind. Be kind to everyone you come into contact with, and there’s a chance they will be kind to you and the next person they speak to. 

What’s one thing you couldn’t live without? 
Water and a musical instrument of some sort. 

What is the one thing you cannot resist? 
Looking at dishes before I use them to make sure they meet my cleanliness standards. 

What is your greatest fear? 
My Achilles Tendon being damaged or severed. 

Which one would you want most – flying cars, robot housekeepers, or moon cities? Flying cars.

Where is the best place you’ve traveled to and why? 
Germany. It is such a gorgeous country and they are very environmentally conscious.

How do you define success? 
Knowing that I put the hard work into the task I am attempting to accomplish. I feel successful when I can honestly tell myself that I put my best effort on the table.

Tell us something that might surprise us about you. 
I believe I am more introverted than extroverted but I have lots of friends and will hang out with them more than 50% of my free time. 

What is the greatest challenge you have had to overcome in your life thus far? 
Being a good college student. Still working on that. 

What makes Easy Time Clock such a great place to work? 
Having a voice that is heard. Grouping together to brainstorm to solve issues and come up with policies. 

Tuesday, June 20, 2017

From the Gardner Household


From the Gardner Household

by: Alisha Allen Gardner, CEO of Easy Time Clock

As most of you may not be aware, my mom was diagnosed with Stage 4 Lung Cancer in March 2016. It had metastasized to her bones with a large mass in her lung (about 6 cm). When tested, it showed it was a mutating cancer. Which is why I jokingly call my mom a mutant... 

When we finally figured it all out last year, we had one option. To do an oral chemo called Irressa for about a year or so (hopefully) and then do traditional IV Chemo about a year or so (hopefully). Statistically at that point in time, people with this diagnosis had 2 years to live with 5% making it to 5 years. So, you certainly don't want to use up the medication any faster than necessary.

The February 2017 PET Scan showed the main mass was growing back. It had grown at least a centimeter in mass or around or however you look at that. May 16 2017 scan showed the mass had grown another half centimeter all around.

Luckily, we got the year that the Irressa was supposed to give us. We were expecting to have to go to our only option left, IV Chemo.

Recently a new drug was released that was presented by a pharmaceutical sales rep in the last few weeks to our doctor. After reviewing mom's PET scan, he called the rep to find out if mother's circumstances are applicable.

To be applicable, her cells need to have developed an abnormality of a specific kind (I believe it has to have a specific protein but don't quote me on that). If she is able to, she will be the FIRST for our doctor to use this drug.

In addition, due to the way her cells have mutated there is also a chance now, that we didn't have last year, that she could be applicable for an immune therapy drug that boosts the immune system. We proceeded to do the biopsy to confirm what she was applicable for.

Thanks to the testing that was completed, my mother is eligible for an immune activator medication. She started her first treatment June 19th which will be via IV once every 3 to 4 weeks.


The cancer doctor has officially taken any amount of time left off of the table and mentioned several more options recently made available.

While we may have to keep changing medications over time, we are now relieved that we will be able to spend many more years together. 

In light of our good news we celebrated by watching Wonder Woman and sporting some WW shirts to show our Butt Kicking Cancer Girl Power!

My mom was told she was going to die in less than 5 years. A year into that we were placed with an infinite amount of time available. It is amazing what 1 year in today’s science world can make.

Here is an article that has an excellent explanation of what is happening right now-https://mobile.nytimes.com/2017/06/08/health/cancer-drug-keytruda-tumors.html?_r=0&referer=https%3A%2F%2Fwww.google.com%2F


Sunday, June 4, 2017


Employee Spotlight

Ellie Wright, Manager of Operations 


Ellie Wright describes herself as an artist and a writer, but her team sees her as so much more than that.  Joining Easy Time Clock as a customer service specialist in 2014, Ellie’s leadership abilities and “get things done” attitude got her potential noticed quickly.  In the office, Ellie is veritably a jack of all trades; from organizing volunteering events to editing the website verbiage, Ellie is truly a crucial member of the ETC Team.  Solving puzzles in Portal and sniping psychos in Borderlands helps her relieve some of the stress of being so awesome.  Ellie loves each of her animals – two cats, three birds, and the best of all - a newlywed husband!

Learn more about Ellie by reading her Employee Spotlight interview. 

What are the three traits you would use to describe yourself? 
  •       creative
  •        introvert
  •       animal lover
What is your personal philosophy?
  •        Let it be 
What is the one thing you couldn't live without? Couldn’t live without
  •       “Me time”
What is one thing you cannot resist?
  •      Being lazy
What is your greatest fear?
  •       Death
Where is the best place you have  ever traveled?
  •        Coronado Island in California
o   The beach has glitter gold sand.

How would you define success:
  •        Making a change for the better.
Greatest challenge overcome
  •       Being a parent, although I have not overcome it yet!
Easy Time Clock is a great place to work because…
  • I am able to do the things I love with a great team.