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BuyerZone Covers Payroll Scams in the News
Watch out for scams like these
A Guest Post by BuyerZone.com Staff
How many times have you seen it happen in the movies? A business partner cuts a million-dollar deal, goes to lunch with his accountant, then wakes up the next day to find out that the accountant took his life savings on a one-way flight to Fiji. Sadly, this is one of those cases when movies imitate real life events. Payroll scams are increasingly common in the news today, and here are the following news stories.
October 20th saw the beginning of court proceedings for a small payroll company charged with forging bogus checks from legitimate client businesses, and cashing over half a million dollars at banks in several states.
An ongoing payroll scam involves using the Internet to prey on job-seekers. Individuals are offered a �payroll clerk� position, mailed a large check to cash, and asked to wire a percentage of the money from the check to cover �taxes and insurance�. After they wire the funds, the check bounces (it was counterfeit) and the victim is forced to cover the balance of the check with their own bank account funds.
Two people were charged in early October 2010 for defrauding Sacramento County, California of $17 million via a payroll tax fraud scam. Ingentra, a New York-based payroll company, withheld taxes from the IRS the taxes collected from the county�s employees. The County is now responsible for payment of the taxes, which will hopefully be resolved in court.
Unfortunately, payroll scams are nothing new, largely due to the fact that the industry is unregulated. The best defense against hiring an untrustworthy payroll company is to research the company thoroughly before signing a contract, assign someone in your company as in-house payroll manager to monitor the outside company�s activity, and check that your taxes have been filed by checking the Electronic Federal Tax Payment System website.
Sources: NJ.com, CNBC.com, KCRA.com
This is a guest post by BuyerZone, a lead generation website for payroll services and 150 other products and services. Learn why 8,500 companies are using BuyerZone leads to supplement their sales activities.