It’s hard to overestimate the importance of proper payroll processing. Making sure that the payroll system you are using is protected and secure is an important undertaking. If the system is breached, it could impact the future of your business both long term and short term. Addressing payroll security issues is one of the best ways you can insure you are protected.
Payroll that runs efficiently and on time is not just a perk – it is something that every employee expects from his or her employer. Failures on the payroll front will surely bring down the morale of the employees or incentivize them into looking for a new employer. If your small business is not safe-guarding it’s payroll, you are sending a message to employees that their paychecks are not a priority for you.
As appearing in NBC News:
Ransomware Attack Threatens Paychecks Just Before Christmas
A major payroll company has been crippled by ransomware hackers, leaving some companies around the country scrambling to cover employees’ last paychecks before Christmas and many workers wondering if they’ll get paid on time.
Kronos, one of the largest workforce management companies in the U.S., was hit with ransomware Saturday…. to read the full article click the link below.
Statistics of Security Breaches:
- There is a cyber attack every 39 seconds, affecting 1 in 3 Americans each year.
- 43 percent of cyber-attacks target small business.
- Since 2013, there have been over 3 million records stolen by security breaches each day.
- The average cost in 2020 exceeded $150 million.
- More than 29 million records were exposed in 850 breaches in various sectors, including: financial, government, health care and education.
Most Common Payroll Security Issues
Payroll issues vary from company to company. Fortunately, here are some of the problems you can look out for when it comes to security issues with payroll.
Fraud: In smaller HR departments, there is usually a single person handling the payroll. Although it might be a cost saving measure, a single employee has the ultimate power when it comes to fudging the numbers or making mistakes.
Confidential Information: Another factor is a single employee might give out confidential information about an individual. When employees – especially payroll department employees – do not understand how to keep information secure, there are bound to be problems.
Software Updates: Failure to update software, keep firewalls enabled and deal with malware in a timely manner is a major way small business finds themselves falling prey to professional scams.
Best Practices in Payroll Security
Some of these practices are more important than others depending on the size of your business, but they should all be put into place as soon as possible. It is much easier to practice preventative measures and avoid a security breach than to clean up the mess after a breach occurs.
First and foremost, make sure that you use up-to-date payroll software on systems that are regularly updated. Most people who would attempt to breach your system are counting on out-of-date software that is vulnerable to known exploits. Fortunately, investing in better technology can help make your entire payroll department more productive, so this is one cost that should be easy to justify. If you can’t afford new systems, make sure that the ones you have available are updated and continually monitored.
Monitoring is, in general, another major watchword when it comes to best practices. If you want to prevent easy internal fraud, make sure that more than one person has access to payroll. You should never put this kind of burden on a single employee, so split the duties and make sure that each employee works as a check against the others.
Hiring a Professional Payroll Company
Yes, it might be time to upgrade to a professional payroll company like Liberty Payroll and HR. But remember, not all payroll companies are created equal. There are common mistakes companies make when hiring a third-party payroll provider:
- Making Assumptions – By reading the contract carefully you can have a complete understanding what the payroll company will do and what might be an extra cost.
- Cross Check and Verify – Double check the information that you give to your payroll company before you send it over. Never assume that your numbers are correct – run them a second time and make sure that there is always a second set of eyes on anything you’re sending out. If you can send out reliable data, you’ll end up getting reliable results in return.
- The Cost – Instead of focusing on getting the absolute lowest price, try to focus on getting the best price for the services you need. Doing so will give you a much better chance of saving money over the long run and give you a good chance to avoid payroll problems in the future. Try to focus on the value of the service rather than just the price tag.
Are you looking for powerful software and customized payroll solutions that are tailored to fit your small business needs? Stay ahead of the payroll compliance curve with Liberty Payroll and HR.
Switching is simple! Liberty Payroll and HR offers customized solutions to fit your small business needs. Our payroll and HR services are scalable! Whether your business is small or large or somewhere in between, we will customize a solution with the payroll features to meet your exact needs.
Payroll by people, not just software. Call 973-690-5200 and get one month of free payroll on us!*
*One free month after processing normally for one month. Offer valid to new customers only.