When I speak with business owners and HR professionals, one of the biggest challenges I hear is making sure “I have all of my new hire paperwork in order.”

One of the forms that I find the business owners fail to have done is the LS-54.  This form is the notice of pay rate and payday and is required by New York State. 

This form is needed every time you hire a new employee or an employee has an increase in pay rate.  This form is very easy to fill out, you need our employee’s rate of pay.  You need to know if they are weekly, monthly, or bi-weekly payroll when their payday is.  Whether it’s Wednesday, Thursday, or Friday and what their overtime rate is.  Then they sign it and you sign it and it’s done. 

What is your risk involved in not having one of these forms? 

There is a penalty of $5,000 plus double liquidated damages, which is another $5,000 to equal $10,000 in possible damages.  The risk is very high in not having the LS-54 filled out with each employee, by the way, there are different LS-54 forms for your hourly employees and there is also on for your salary employees. 

The good news is if you’re working with a payroll company they should be doing this for you already.  If they’re not what you could do is go to the New York state department of labor website and look up the LS-54 form notification of pay rate and payday.

Direct Deposit Diversion Fraud Costs Businesses Over a Million Dollars Every Month

There’s an important scam you need to know about called direct deposit diversion fraud and it’s costing businesses over a million dollars every month.

What exactly is direct deposit diversion fraud?

It’s when a cybercriminal changes your employee’s direct deposit bank account to the criminal’s bank account. So on payday, you think you are paying your employee, but you’re not. You are paying the criminal instead. 

How does this happen?
It’s easy. All the criminal has to do is get your employee’s name, email address, and find out where they work. This can be gathered from several different sources including the company website, from an email, or by looking the person up on social media and checking their FB page or Linked In profile. Then the criminal pretends to be your employee and sends you an email asking to change the employee’s direct deposit bank account. 

Can’t the Company just get their money back?
No. These crooks know what they are doing and change the direct deposit bank account to a loadable debit card that’s already in their possession. Once these cards are loaded, it’s virtually impossible to get the money back. 

How Can Your Company Protect Itself?
It’s simple. Unless the employee hands you a direct deposit bank account change in person, you must go the extra mile and make a phone call and speak with your employee, every single time, to verify that the request you received by email is real.