Is Your Payroll Processing Safe?

Payroll Processing

Payroll data needs to be secure. You don’t want banking and personal information like social security numbers getting into the wrong hands. Nor do you want to risk losing your data to hard-drive corruption or other data-loss events. Outsourcing your payroll can be either advantageous or dangerous when it comes to securing your payroll data.

Following are security issue you should think before you decide your payroll processing:

1. Payroll Software Inhouse application may be an easy, safe and affortable payroll processing method for a lot of small businesses. Some payroll applications, such as ezPaycheck from, support data backup feature and do not require internet connection at all.

Assuming you have adequate security measures for your computer system, including firewalls, secure data back-ups and 128-bit password encryption, using in-house software is a reasonably secure way to handle payroll. You’ll know exactly who has access to your records and no data needs to be transmitted across the Internet.

2. Accountants or Payroll Processing Firms If you’re considering hiring an accountant or small firm, make sure you ask about their security and back-up systems.

Large firms often have secure processes, hi-security computer servers and back-up systems to keep your data safe. These firms are likely to have better data encryption and security than you’ll be able to put in place yourself, so you can be sure your data is safe. Small firms and solo-accountants are not likely to have the same level of security as large firms and computer systems may be vulnerable to hackers or data losses.

3. Online payroll processing service

Web-based services may or may not have adequate encryptions, security and back-up systems. Make sure you ask about security and find reviews on potential outsourcing sites before you buy. And if your own computer systems are insecure, it won’t matter how secure the web-based service is because your data transmissions will be vulnerable to hackers when you send data over the web.

Every business is unique and while payroll software is often an efficient, cost-saving payroll solution for most small and mid-size businesses, you may find that you enjoy the freedom and expertise of hiring an accountant or payroll service. Only you can decide which is right for your business.