Simple Concepts for a Complex System - Payroll Reporting and Employer Fraud
William (Bill) Zachry
One of the most common types of employer fraud in workers' compensation is employers who lie to the insurance company about the payroll classification of their workers and salaries that have been paid.
A common example of this is the roofing company that has 26 front office clerks and one roofer. One would think that simple analytics in the insurance company underwriting programs would catch much of this blatant mischief.
A few of the largest payroll companies in the USA ...
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