Workers’ compensation and payroll processing can be somewhat complex—no matter how many employees you have. Workers’ comp payroll systems, however, can help HR managers and payroll administrators streamline the process.
When it comes to utilizing payroll systems, ensuring employee data privacy is crucial. How can you be sure your employees’ information is protected? Let’s dive into potential threats to payroll data, best practices for keeping data secure, and how PEOs can help.
Risks and Threats to Payroll Data
Everyone at your organization will have likely shared their Social Security number, home address, as well as bank details for direct deposit. If your company uses software for conducting payroll and workers’ compensation, there are certain risks to be aware of.
One possible risk is an external data breach—when someone from outside your organization gains access to sensitive information through malicious software, hacking, or phishing attacks. This can be incredibly dangerous for everyone at your company who has shared personal information under the assumption it was secure. In addition to affecting your workforce, data breaches can have a negative impact on your company financially and in terms of credibility.
Best Practices for Ensuring Data Security
Payroll software is constantly improving, with new features and functions available all the time. As payroll systems evolve, it’s important to keep your system up to date so you have the latest version available. Skipping updates could make your software vulnerable to outside threats.
Properly educating and training your employees in cybersecurity is crucial in helping ensure data protection. Phishing attacks often come through company email, so it’s essential that your employees know how to defend themselves against cyber threats. Schedule training sessions with your team regularly so everyone feels confident in knowing what to watch out for when it comes to potential cyber attacks.
Creating a secure onboarding and offboarding process is also incredibly important for protecting data. First and foremost, vetting each new hire before giving them access to any form of sensitive information is crucial for the safety of your company. As employees leave, be sure to deactivate or close their accounts so they no longer have access to company data.
Role of PEO Services in Securing Payroll Data
Professional employer organizations (PEOs) handle the administrative tasks of a business—from onboarding and offboarding to payroll and workers’ compensation. Partnering with a PEO can alleviate much of the burden placed on HR managers and payroll administrators.
PEOs typically have their own app for both employers and employees to access payroll and workers’ compensation, making the process simple and streamlined. Data privacy laws help ensure that a PEO’s data is secure. It’s also a good idea, however, to ask how they secure their data—such as data encryption and the ability to securely send and receive documents.
Implementing Robust Cybersecurity Measures
Working with a PEO means there will be safeguards in place to ensure that your data is secure. PEOs offer password management to help users generate and securely store strong passwords for their portal. Multi-factor authentication is also essential to data protection—requiring users to provide two or more pieces of information before accessing their account.
Antivirus software scans files and emails looking for potential malicious activity, making it another necessity for protecting your employees’ data.
Additionally, cybersecurity training should be a requirement for all employees so that they have a clear understanding of what to look for when it comes to possible phishing attacks.
Future Trends in Payroll Data Security
Protecting your privacy online has never been so imperative. As technology continues to advance, so does payroll data security. Going forward, AI will likely be utilized even more than it already is—identifying patterns and signs of potential threats—to quickly catch intended attacks. There will likely also be more emphasis on authentication and authorization for users within an organization, rather than focusing primarily on external threats.
Protect Your Payroll Data with Strong Security Measures
Partnering with a PEO is a great way to get support protecting your employees. Secure your payroll data with our advanced workers’ comp payroll solutions. Contact our team at OCMI Workers’ Comp to learn more!
