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Payroll security consists of all the measures taken to protect sensitive employee information such as bank details, addresses, and social security numbers from potential threats both in and outside of the company. Processing payroll includes sensitive employee data such as names, social numbers, and salary information. Due to this, companies are obliged to protect their employee’s data from data breaches through cyber-attacks and adhering to GDPR regulations.

So, how can you enforce global payroll security?


·Payroll Security:

Implementing payroll practices into your security measures means policies are available to employees should and when they need them. This includes elements such as, but not limited to:

>     Limiting the number of employees with access to sensitive employee data

>     Encouraging employees to receive direct deposits instead of printed cheques

>     Implementing a cloud-security software

>     Ensuring compliance in accordance with the data processing regulations of each specific country

· Payroll Software:

Regularly updating your payroll software ensures the security level is at its finest and accessing the latest third-party integration. Furthermore, a clear update policy in your company’s payroll and security procedures is the best way to ensure that your software is constantly updated.

·Payroll Duties:

Disseminating payroll tasks between a few employees reduces the risk of theft and fraud as limited people have access to this data. However, having aspects of the payroll process checked by a few staff helps to check for human error and minimise mistakes. Human error remains to be one of the top reasons for payroll mistakes and accidental data breaches, resulting in compromised security.

· Payroll Audit:

Annual payroll audits can assist you in preventing data breaches, fraud and embezzlement threats. The number of data breaches increased by 68% from 2020 to 2021 so it is vital to keep on top of this.

How should you run your audit?

1.    Talk with your payroll and IT teams – evaluate your current procedures and gather feedback

2.    Confirm employee information such as pay rates

3.    Compare hours from your payroll records to the hours reported on timecards

4.    Run a ledger report to match every transaction to your payroll records

· Payslips: Physical vs Digital:

While direct deposits are favoured from a security aspect, some employees prefer physical printed cheques. A way to avoid security breaches is to limit the amount of sensitive data printed onto them.

· Payroll Operations:

Third-party providers can help to protect your employee’s data through their own comprehensive security measures. This route requires you to gather information about:

>     Data encryption

>     Security features

>     Servers used to store data

>     Payroll history

>     Payslip distributions

>     The provider’s reputation – how do they handle security issues?


· Employee training:

Did you know that 85% of all recorded data breaches are unintentional? Employees need to fully understand the entire payroll process, especially when expanded across a global scale, and the accompanying strict guidelines to ensure data breaches do not occur.

· Former Employees:

Security breaches can be caused by former employees who know sensitive information. A way to minimise this risk is to remove their access to your payroll software and recover company assets such as security credentials and equipment.

· Credentials:

Research shows that employees should update their password every 60 to 90 days and should be clearly stated in the company security procedure as well as stated in their training period.

· Time Theft:

Timesheet errors make up a large part of human error in payroll. Timesheet falsification occurs when employees intentionally misrepresent the amount of time they worked on their time sheets. Clear time attendance policies and attendance software will improve your global payroll security.

Payroll is a key part of any company and is heavily relied upon by your employees. It is critical to make sure it is done correctly and to give your employees peace of mind that their details and hard-earned money is secure and safe.