Final answer:
Payroll fraud schemes involve ghost employees, timesheet fraud, worker misclassification, and pay rate alteration. Faced with theft accusations, the employee should seek a thorough investigation and, if necessary, legal representation. Taxes for a business owner and employee include corporate income tax, individual income tax, and payroll tax.
Step-by-step explanation:
Payroll fraud schemes are a critical concern for businesses and can manifest in several forms. Four major categories of payroll fraud schemes include: Ghost employees: This scheme involves the creation of fictitious employees in the payroll system, allowing fraudsters to collect additional salaries. Timesheet fraud: Employees or managers may falsify timesheets to receive payment for hours not actually worked, potentially inflating their hours or overtime.
Worker misclassification: Misclassifying employees as independent contractors can evade payroll taxes and other employee benefits, thus defrauding tax authorities and employees. Pay rate alteration: Manipulating employee wage rates or withholding amounts to steal funds or reduce payable taxes is another fraudulent practice. In the scenario where a cashier at a retail store is confronted with a shortfall in their cash drawer and labeled as a thief, it can be a distressing experience.