When checking for phantom employees, which action should be taken?

• A. Notify the employees of an impending physical payout
• B. Mail checks directly to employees' homes
• C. Have employees pick up checks and direct deposit/paycard advices and show identification.
• D. Have managers hand checks out to their employees

Answer: (C)

Verifying the recipient’s identity before delivering payroll funds is essential to prevent phantom workers from being paid. Requiring employees to pick up their own checks and paycard advices in person and to show valid identification creates a tangible link between the payment and the actual person on the payroll. This in-person verification helps ensure the payment goes to a real employee and provides an opportunity to confirm identity, reducing the chance of someone collecting funds for a non-existent or unauthorized worker.

Options that involve simply notifying someone about a payout, mailing checks to a home address, or having managers hand out checks without verifying identity introduce opportunities for misdelivery or fraud and don’t provide an effective check on who is receiving the payment.