Which term describes a person who receives a paycheck but is not currently employed?

• A. Ground rules (meeting)
• B. Garnishment
• C. Ghost employee
• D. Fringe benefits

Answer: (C)

In payroll management, a ghost employee is someone who appears on the payroll and receives paychecks but is not actually performing work or is not actively employed. This term directly fits the situation described in the question, where a person gets paid even though they aren’t currently employed. It highlights a payroll control issue—ghost employees are a common red flag for internal fraud or payroll errors, and organizations protect against this by verifying active status through attendance records, hiring data, and payroll registers, along with checks like separation of duties and regular audits.

Garnishment refers to deductions from pay for debts, fringe benefits are extra compensation or perks, and ground rules relate to meeting guidelines—none of these describe a person who is paid without actual employment.