How to Maintain Confidentiality with Payroll Processing
Filed under: Payroll
A lot of confidential information is required for payroll processing. Not only do you need to manage details about your business finances, but you also have information about the employees as well. It is essential that you are proactive to keep this information confidential, to avoid problems of theft, fraud, or other risks.
Mark Rowley, Owner
RandR Payroll Services
What Information Needs to be Kept Confidential?
Here are some of the payroll details that you need to keep private. This information should remain under lock and key, with managed access for authorized people:
- Social Security numbers
- Pay rates
- Hours worked
- Addresses
- Legal names
- Garnishments or withholdings
- Birth dates
- Insurance deductions
- Benefit details
- Bank account numbers
If you have sensitive information on file about a person or the company, then you need to protect that information proactively.
Why Does Payroll Confidentiality Matter?
Why does it matter if you maintain payroll confidentiality? The obvious reason is to prevent theft of the money in the bank accounts. But, you also need to think about the risk of identity theft if the personal information falls into the wrong hands.
Additionally, it is a good idea to maintain confidentiality regarding pay rates to reduce the risk of jealousy or discontent among employees. Even if two people are doing the same job, someone with more experience might be paid more than an inexperienced employee. Making this information public could cause the lower-paid employee to feel like they aren’t being treated fairly.
How to Keep Payroll Confidential
It is important to make sure that you limit access to payroll information. Only designated people who help with payroll processing should be able to access these details. Also, setup strong passwords to reduce the risk of hacking or unauthorized access.
Hiring a payroll processing company can be a great way to maintain confidentiality. When the payroll is managed by an outside company, then you don’t have to worry about the confidential information being shared among employees.
Do you need help with your payroll processing? R&R Payroll & Bookkeeping Services offers the services that you need. Schedule a consultation to learn more about the benefits of payroll services: (951) 296-0412.
