Submitted by: Submitted by southfla79
Views: 109
Words: 279
Pages: 2
Category: Business and Industry
Date Submitted: 05/29/2013 11:17 AM
First, Ken should not have deposited any payroll checks after he was terminated from the company. Doing so shows a lack of morals and ethics on Ken’s part. I would imagine the company has several possible means to recoup those funds. The company should definitely review its payroll processes to ensure this type of error does not happen again in the future.
If the company wishes to recoup the funds, one possibility would be going through the company’s bank. Banks allow stop payments to be made on virtually any check. I imagine the company could place stop payments on the four payroll checks and recoup the funds that way. The company may seek legal recourse and sue for the missing funds. However, legal costs can add up and it may not be cost effective to pursue a law suit if the total amount paid out is less than the legal costs.
The company should undertake a review of their reporting systems to automate termination reporting. Assuming this is a large company, most of their payroll processes are probably automated. A new function could be added to their system where a termination that is keyed by the Human Resources department into the system is automatically sent to the payroll department for immediate processing. Another check that could be added is having each supervisor sign off on payroll hours prior to them being processed. This extra step would an extra set of eyes to the process and hopefully eliminate any future errors. If Ken’s supervisor had seen the payroll reports prior to them being processed, he would have notified HR and the payroll processor that the employee has been terminated.