True Payroll Crime Stories - Crazy Eddie (Episode 99)

[00:00:00] But I've known business owners in the past that have reported lower annual salaries to

[00:00:07] avoid taxes.

[00:00:08] But guess where I bid them in the butt?

[00:00:11] Welcome to our podcast.

[00:00:12] It's about payroll.

[00:00:14] We're your host Brian Escobar and Walter William Duncan III.

[00:00:19] Whether you're new to the payroll game or seasoned veteran, we have something for you.

[00:00:26] Welcome back folks. have payroll news to share. My story is about a company named Merkins and they are a global leader in payroll technology providing enterprise businesses and HCM providers with an innovative solution for global payroll processing. Their product is called G2N, G, Like how do you, and I do know how it will work. It's just, it's so progressive, it's we need it because everybody, it's such a sensitive topic with data. And I'm really sad to say that folks still have not caught up

[00:03:01] with how sensitive data and how careless we're being with data.

[00:03:05] So that was a huge call out.

[00:03:07] Another one, let's know what the challenges are. Who knows too many countries to not enough payroll out of those country? Who knows? But it's a big call out. Awesome. Let's see data privacy compliance. The stateless app architecture2N overlays the foundation for incorporating blockchain technology into payroll processes. It allows for tamper-proof verification of payroll calculations and payments in real time. That's a yes.

[00:05:40] That keeps in real time.

[00:05:42] Real time.

[00:05:43] Yes.

[00:05:44] Yes.

[00:05:45] And that's where we're going with it all.

[00:05:46] We just had the demo of payroll.

[00:05:47] Don't say it.

[00:05:48] Yep. HCM or workforce managers, software solutions. So cool. Shout out to Merkins. Yeah. I'm also talking to a representative over there. We're trying to do like a collab on some content and payroll stuff. Merkins is doing it. Thanks. Shout out to Merkins. I'd love to see it and I'm here for it. What do you got for us? So the article I have is from a, a site called fast company.com.

[00:07:05] And it's talking is, man,

[00:08:21] like that kind of the talk is all man.

[00:08:23] You got that F man, then you have a hard time finding a job.

[00:08:27] You got to start your own business.

[00:09:24] we do this being that it's any way to do it. You should say in your handbook, Hey guys, you can't do it at work. Yes, it's a medical sure it's recreational, but that does not

[00:09:32] get just like you can't drink alcohol at work and come to work wrong. It's the same thing.

[00:09:37] HR payroll folks, when you guys are faced with these questions and conversations, it's

[00:09:42] that's the fix that you just can't do it at called high functioning, right? Yes. Smoke is still be high functioning. Sure. Or whatever. If you're not a high functioning person, a you partake in this stuff. And you go to sleep. Yeah. You can't sleep at our own work.

[00:11:00] We get the desk to leave in a show of bread, a bunch of chips,

[00:11:06] food around all the net. Yeah, there was a this number of four restricting non compete agreements, non compete agreements, long cultural or facing increased scrutiny and regulation. States like California, Oklahoma and North

[00:12:21] Dakota have already restricted their to another workplace. Interesting.

[00:13:40] Okay, good call out.

[00:13:41] Yeah, interesting.

[00:13:43] Number five, enact's much needed. Thank you for that. Sir. It's dope, man. Off to the nitty gritty. Yeah, the Shapiro crime. This episode is presented by Time Track Go. The simply better employee time clock software that is going to make your life easier.

[00:15:01] In addition to the unique graphical employee time card that helps you quickly identify

[00:15:05] and fix mistakes.

[00:15:07] Time Track Go is excited to announce. that's 888-321-9922. Let's go. Yeah, man. So right there. We have a fun story today. It's something that Brian is familiar with. I've seen clips of this and we're going to... I was just a shop in the store. You know what I'm saying? So it's about crazy eddy electronics.

[00:16:22] Yes.

[00:16:23] Of course, low prices and millions of dollars and stopped because the government. But it makes me think about that movie. Catch me if you can. Yes. And back in the day that dude, it was a Leonardo Caprio. And he was, but it was back in like the 70s and whatnot. And he was just writing checks and cutting checks and they couldn't catch him. It was a good, it was one of my favorite, my wife hates it, but it's one of my favorite movies. Yes, crazy Eddie.

[00:19:01] I grew up in New York in the 80s.

[00:19:03] And this was like, I was there once a week.

[00:19:06] Like my mom used to come by me in a tarry game. to told us that. Oh, yes. I remember the story. Now you told me. Yes. I remember. Yeah. You get some of your pay under the table. We're going to report this much, but I'm going to pay you this much. Oh, man. And look, that not only that doesn't only happen to employees in this situation, but I've known business owners in the past that have reported lower

[00:21:44] annual salaries to avoid taxes. But guess where I not only that, what? Think about this.

[00:23:00] If I'm making, OK, I'm this employee that they're doing this scheme to, right?

[00:23:04] And I'm making a hundred grand. is legal. So down on the shirt too. Yeah, no doubt. No doubt. Shout out to the bill, manning, rest in peace. Number two is IPO manipulation. Tried to go public in 1984, crazy, Eddie, gradually reduced skimming, showing to show more profit growth and to attract investors.

[00:24:23] The IPOs raised significant funds for the family. So it was all bank in the US. That's how it goes. Wow, that's crazy, right? Yeah, it's nuts. So number four, financial downfall. Eddie's attempt to take company private in 1987 and failed leading to exposure and investigations.

[00:25:41] The new management discovered the $40 million

[00:25:43] inventory shortfall, which prompted Her yes, now what it is. What is what is it? Yep. What are solutions? What a prevention number one? Strong oversight all the time when they need strict oversight controls could have deterred the antars from engaging fraudulent activities. So I know that probably would have been difficult because

[00:27:07] They were the owners and then me was the CFO. owners. They get so tempted. And I wanted to say it and we did a true payroll crime for it's about your paycheck last week. And I thought about it then and the temptation came up, right?

[00:28:21] And I forgot to say it when the there's so many but again you just exactly we keep talking about it i would love to to discuss the psyche someone things if you're a part of it then you know Beware be careful It's not gonna take you to any good places

[00:31:01] But if you're like a payroll person and you know what I mean? They just made a bad name for them, which kind of helped the advent of Best Buy, the

[00:32:21] Best Buy of it all.

[00:32:23] We used to have Circuit City in New York too, and that went under.

[00:32:27] That's a great business case. Hey, this is a this is a problem for this is forget the I can't think of the right fancy word But you call it out to your boss's a this is a problem for us. There's a check Descript is yeah, I can't think of the word. We have an opportunity. Yeah to fix this Yes, we have a loophole in here. That's right. That's right

[00:33:44] So what'd you think about crazy?

[00:33:46] Crazy man, I didn't know that happened New York. What's the quick bet? It doesn't show me that. Oh, bro. I were like, so was crazy, crazy at ease? Were they out there? Radio shacks up? They were going to be a yes, eventually they could have probably grown to be like, yes,

[00:35:02] best buy type deal. Yeah. Absolutely for sure. Yeah. And especially in payroll. And like we said last week is like in payroll, you have to be beyond reproach. Right. As you do. You cannot. You can't be any type of questionable, any type of that's why I think when I read Ray

[00:36:23] Diallo's book, Principles, and trust thing. Yeah, it's like, I let you go. There's a thing with auditors, right? And this is this is the same way I think like with auditors, when they find one era. Now it's how many more are there? Same thing. If I see that you grimy in one area of your life, how grim you can you be in every area of your life?

[00:38:42] gracefully send you out the door. So let me gracefully fire you.

[00:38:45] That's what I want.

[00:38:47] Exynx stayed in love.

[00:38:48] Yes, exactly.

[00:38:50] Exactly right.

[00:38:51] Yeah, that's what about you.

[00:38:52] Like, how do you think this?

[00:38:54] How does this play out for you?

[00:38:56] So you said it, you said, basically,

[00:39:01] you shouldn't get offended as an employee.

[00:39:04] If your employer comes and says know what, you make me think of something about something early on in my career. I was young, I used to do we should do appliances, the least for Sears. That was like, I think my well, my first job first job.

[00:40:22] On the books, I believe was wall do my job because of all these measures, silly. You don't want to create so much friction that you can't even just you can't just normal

[00:41:40] operations.

[00:41:41] Oh, yeah. And before you go to a good one, it's a fun story. It's very nostalgic. Very, if you're an 80s baby, Northeast, you'll know for sure. But just a quick takeaway for all of us is temptation. Avoid that temptation. Pero-pros, HR-pros, got to be beyond reproach. Yes. Yeah.

[00:43:00] If you see something, say something like they said

[00:43:02] in New York back after some things.

[00:43:05] If you see something, say something.

[00:44:02] the one that played a lot of politics going on. Yeah, be that.

[00:44:04] And they use it to their advantage.

[00:44:05] And I tell the company that I know it was Walt that says something.

[00:44:08] Yes.

[00:44:09] Well, that makes me look good.

[00:44:11] I'm from company person company guy.

[00:44:14] I'm a company girl, like whatever for the company.

[00:44:17] So yeah.

[00:44:20] Yep.

[00:44:21] Yeah, exactly right.

[00:44:23] All right, folks, that was dope.

[00:44:25] Yeah.

[00:44:25] Hope till next time we love you.

[00:44:29] Peace.