Question

Why might relying solely on the supervisor to determine the existence of a "phantom employee" and distribute paychecks be a potential concern?

A) Because supervisors are always aware of all employees in the organization.
B) Because distributing paychecks is not within the supervisor's responsibilities.
C) Because supervisors may not have access to accurate payroll records and could be susceptible to biases.
D) Because "phantom employees" do not impact payroll accuracy.

Answer 1

Reliance on a supervisor to identify "phantom employees" and distribute paychecks can be a concern due to potential biases and lack of access to accurate payroll records, increasing the risk of fraud. With the evolving manager/employee relationship, ensuring a system of checks and balances is vital for payroll accuracy.

Step-by-step explanation:

Reliance on a supervisor alone to determine the existence of a "phantom employee" and to distribute paychecks might raise potential concerns. One of the key concerns is that supervisors might not have access to accurate payroll records and could be susceptible to biases or even fraudulent activities, such as adding non-existent employees to the payroll to embezzle funds. The complexities of payroll taxes in the United States, which require accurate reporting to federal, state, and local jurisdictions, underscore the importance of transparency and accountability in payroll management, away from sole dependency on supervisors.The traditional manager/employee relationship is becoming more collaborative, with both parties contributing to the success of an organization. In this modern context particularly, a system of accountability and checks and balances distributed across various roles in an organization can help prevent the misuse of funds and ensure that all employees, real or otherwise, are accounted for properly in the payroll system.