3 Proven Options to Improve Payroll Security

1. Adopt a Cloud-Based Payroll Solution for Data Security

Using online, real-time payroll software ensures your people and payroll data are safe and secure by enabling a lot of security functionality.

Cloud-based payroll software allows you to access payroll data easily from your device with an internet connection. It also enables multiple users to work simultaneously on payroll, with any updates immediately visible to other users. Cloud-based software improves productivity, and product updates are seamless, ensuring you always use the correct version.

Cloud-based software offers advanced security and reliability. In the cloud, your data is stored on a server in a data centre. The data is stored on cloud servers and encrypted, making it difficult for unauthorised people to access it.

How Cloud-Based Payroll Software Protects Your Data

Real-Time Backups

Cloud payroll automatically backs up payroll data to remote servers, and multiple backups are conducted to protect payroll data. Remote servers provide increased scalability and flexibility when adding new payroll data, like new employees. 

Data Encryption

Due to the nature of the payroll data, it's essential to encrypt it to ensure it is unreadable, even if it is intercepted. Encryption protects employees and businesses against potential financial and reputational damage.

Role-Based Permissions

Role-based permissions allow you to define access rights based on job roles or responsibilities. Each user is assigned a specific role (such as employee, manager, HR admin, etc.), and their permissions are tailored accordingly. Typical roles include employees, managers, payroll administrators, and HR personnel. Permission types include View only, Edit to modify payroll data, Approvals for approving leave, time sheets and other events or tasks and Data Export Control to export payroll data.

Benefits of Role-Based Permissions:

1. Security - ensuring sensitive data is only accessible to authorised personnel.
2. Compliance - Limiting access helps meet legal and ethical obligations related to data privacy. 
3. Audits - Tracking access to modified payroll data means you can streamline the auditing process. 
4. 2FA - Two-factor authentication (2FA) enhances security for payroll data. The extra layer of protection requires users to provide two forms of identification before granting access to sensitive information. Often, this is a password or a code sent to their phone or email. Requiring both types of identification makes it harder for unauthorised users to access payroll data.

2. Switch to an All-In-One Solution

One way to help ensure payroll data security is implementing an all-in-one workforce management (WFM) solution like Access Definitiv. 

All-in-one WFM solutions benefit businesses in many ways, including increased efficiency, improved accuracy, and enhanced security. By using an all-in-one workforce management solution to manage all aspects of workforce management, businesses reduce the risk of security breaches and improve their overall payroll data security. Learn more about the difference between Workforce Management – Separate Applications vs All-in-One Platform. 

Key benefits of an all-in-one WFM solution for payroll data security:

Enhanced Security 

An all-in-one WFM solution includes advanced security features to help protect sensitive payroll data. Features include multi-factor authentication, role-based access controls, data encryption, and secure data storage. A vital feature of a WFM solution for added security is a mobile app for employee experience. The mobile or payroll app is convenient and ensures security by allowing employees to access their data securely individually. 

Centralised Data Management and Security 

Using an all-in-one WFM solution provides the benefit of centralised data or a single data source. A single data source ensures all employees' data is securely stored. Data loss or theft risk is reduced, and data accuracy is improved.

Regulatory Compliance

Employers must comply with data privacy laws, such as the Privacy Act 1988, when handling personnel or payroll data. Employers that fail to comply with these regulations face significant fines and legal consequences. WFM solutions are designed to comply with various regulations, including data protection regulations, and the software provider implements the measures to ensure compliance.

3. Outsourcing Payroll Processing

Outsourcing payroll processing to a payroll services provider reduces payroll processing risks and improves payroll data security.

If you’re wondering if outsourcing payroll is right for your business, read our blog that answers 5 simple questions, and you'll likely have your answer.

Payroll processing companies have the expertise, knowledge and resources to mitigate payroll data security risks. Payroll outsourcing providers use advanced technologies and robust security protocols to safeguard sensitive employee information. 

Benefits of Outsourcing Payroll Processing for Payroll Data Security:

Reduced Risk of Data Breach

Outsourcing payroll processing reduces the risk of data breaches as payroll processing firms have the latest payroll security systems and measures. The outsourcing providers use encryption, firewalls, and other security technologies to prevent unauthorised access to employee data. Regular security audits are conducted to address any vulnerabilities. 

Compliance With Data Protection Regulations

The payroll outsourcing industry is well-versed in data protection laws. Outsourcing payroll processing to a service provider ensures compliance with data protection regulations. 

Secure, Timely and Accurate Payroll Processing

Outsourcing payroll processing helps improve the security, accuracy and timeliness of payroll processing. Payroll outsourcing providers use advanced software to automate payroll processes, reducing the risk of errors and ensuring that employees are paid accurately and on time and the data is secure.