Which of the following is NOT a type of payroll fraud?

The option regarding issuing bonuses for good performance is not considered a type of payroll fraud because it reflects a legitimate business practice aimed at rewarding employees for their contributions and efforts. Bonuses for good performance are typically designed to incentivize employees, promote productivity, and enhance morale within a company. The process of issuing bonuses is generally transparent and involves proper documentation and oversight by management to ensure they are distributed fairly based on established criteria.

In contrast, the other options involve manipulation or deceitful practices associated with payroll that can lead to financial loss for an organization. The creation of ghost employees involves listing fictitious workers on the payroll to siphon off funds. Altering hourly pay rates entails changing an employee’s recorded pay without proper authorization, which can result in unauthorized payments or overpayments. Requiring supervisor approval for overtime is a standard control measure designed to prevent unauthorized or fraudulent overtime claims, but it does not pertain to fraud itself; rather, it helps to safeguard against such occurrences. These elements illustrate harmful actions that constitute payroll fraud, unlike the legitimate practice of issuing bonuses.