Which of the following is NOT a payroll scheme type?

• A. Ghost employees
• B. Stolen paychecks
• C. Falsified hours and salary
• D. Commission schemes

Answer: (B)

Payroll fraud is about manipulating the payroll process itself to divert funds, either by creating fake workers or by altering how much is paid. Ghost employees fit this because a non-existent worker is added to payroll to siphon wages. Falsified hours and salary fit because hours, rates, or salary data are inflated to increase payments. Commission schemes fit because they involve manipulating how commissions are calculated or paid to generate extra disbursements. Stolen paychecks, however, aren’t a way to manipulate payroll records or calculations; they’re theft of actual issued payments after they’ve been generated. So, stolen paychecks is not considered a payroll scheme type.