A critical function of your payroll is the security of your employees personal and sensitive information. How you store this information is vital to protecting your employees and avoid legal issues. Let us provide a few useful tips for preserving payroll confidentiality.
Limit Access to Information
Employees usually have the ability to access their own records, but other employees should not have access to their coworker’s information. Deciding who has access to all employees’ records and how they are able to access that information is important. By limiting the amount of people who have access to this data reduces your risk. Create guidelines and require supervision while accessing payroll information, and think about having individuals who work in payroll sign a confidentiality agreement.
Office Placement
Consider where your payroll offices are located in the building. Are they located in a high traffic area or tucked more securely in a closed office in the back? Do you position your screen away from those who enter your office, or have a privacy screen so those passing by can’t see confidential information?
Secure Location
Hard copies of documents such as W-4s, i-9s and benefit enrollment forms needs to be under lock and key always, such as in a locked filing cabinet. Even better yet, use online storage on a cloud-based platform with encryption software and advanced security features. Only you as the owner, or an authorized person should know how to gain access to these secure locations.
Electronic Security Check
Today, payroll is mostly managed electronically for businesses. Online paystubs allow your employees to gain access to their records securely.
The software you use and how secure it is matters. Make sure you have a firewall on your computer network and databases to protect your information. Require dual authentication on devices, and make sure your passwords are complex. Use a strong password with at least eight characters, upper and lowercase letters, numbers and symbols; and avoid easy to guess passwords. Make sure your computer that stores information is password protected to login.
Information technology companies are available to check and upgrade your security and to make sure your protection systems in place are working properly.
Keep Changing Passwords
If your payroll person is no longer with your company, you need to change the passwords on every account the employee had access to. A good common practice is to change your passwords often and on a routine basis.
Sign Out
Be sure to sign out of your payroll software and computer when you’re done working, done using it, or even just step away for a moment. Without a password, no one else will be able to simply access the payroll system.
Dispose Documents Correctly
The less documents you have on hand the less of a risk you have to being compromised. Limit your hard copies of documents to those needed for tax or auditing reasons. Be sure to shred those sensitive documents and not throw them in the trash or recycling where they could end up in the wrong hands.
Create Standardized System for Requests
Certain companies like creditors, mortgage or insurance companies, or financial institutions may reach out to you seeking personal information about your employee’s income or attempt to garnish wages. Since there is no way to verify who it is on phone, create a standardized system for such inquiries in writing, and perhaps with legal counsel, to make sure the proper channels are followed.
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