What is a common consequence of altering employee statuses in payroll fraud?

In the context of payroll fraud, altering employee statuses often leads to a reduction of company taxes or benefits liabilities. This consequence occurs when individuals manipulate payroll records to create fictitious employees, misclassify workers, or promote unnecessary salary adjustments to experience lower tax obligations. By not accurately representing the workforce on official records, organizations might exploit loopholes in tax laws or benefit systems, resulting in significant financial gains for the perpetrators at the cost of legal and ethical standards.

The other options do not align with the implications of payroll fraud as closely. For instance, while there might be short-term perceptions of increased payroll accuracy or employee benefits due to fraudulent activities, these are typically unsustainable and can lead to greater scrutiny and legal ramifications. Employee morale tends to suffer in environments where trust is eroded by fraud, which can ultimately harm productivity and company culture. Therefore, the most relevant consequence relating to such illicit practices is the reduction of tax or benefits liabilities, which highlights the allure of these fraudulent activities to those willing to engage in them.