Payroll Security: The Definitive Guide to Company Success

What Is A Payroll Security?

Payroll security and payroll data are important. It houses a lot of sensitive information that only a select few should have access to. Therefore, malicious individuals can try their way to pry into this information to gain access to a multitude of data. Here comes the importance of payroll security.

Payroll security is the process a company puts into place to protect vital information. It tries its best to ensure nothing goes wrong. However, how important is payroll security?

Data is valuable. As the years go by, the significance of data is more prominent than ever. 

One leak is all it takes for cases such as identity theft to occur. Not only that, it can hurt brand image, employee trust, and much more. The data of an individual, such as their address or other personal information can ruin their lives if it falls into the wrong hands. 

In another perspective, payroll security can be perceived as a general financial security that should be taken seriously.

Furthermore, some regulations should be abided by the use of such securities. One of these regulations is the GDPR.

With the hefty fines that GDPR imposes for the failure of compliance, payroll security is a large factor in saving a company from losing a huge percentage of its revenue. 

Lastly, the importance of payroll security is employee performance. Employees would want to have their recognition and compensation taken seriously. With a lack of payroll security, this comes with the uncertainty that anything might go wrong, resulting in the collapse of employee morale, and other characteristics stated before. 


In smaller businesses, it is not uncommon to see one individual handling the entire payroll system. Because of this, manipulation of data and numbers can occur, resulting in possible wage theft or stealing of personal information.

No Security Updates

It is difficult to always be updated with the latest technology. Cutting corners might occur from time to time from updating on a one-time-big-time moment is not a good solution since malware can easily evolve in a short amount of time. 

Moreover, not having a good firewall, or perhaps not enabling one, can lead to catastrophe when a data breach occurs. 

Lack of Supervision

This goes hand-in-hand with fraud. It is better to have systems in place where one person will be reviewed by another during payroll processes. It not only protects the company but also the employees themselves from possible false accusations. 

Too Much Information

When providing a paycheck, you do not need to provide every data on it. Paychecks can easily be lost or stolen. Therefore, it is good to imagine what is only needed to be presented to not compromise the individual or the entire company from breaches.

Up To Date Softwares

We now know that payroll security has a lot to do with data breaches and also outdated technology. Therefore, one of the best ways to have good payroll security is to ensure that all of the technology is updated regularly. 

Moreover, it is not only in payroll security should any company update its software, breaches can be done with other aspects of the system that are not expected. A good general security ensures that the payroll is also secured.

Up To Standards

With every system in place, there will always be standards that need to be met. With payroll securities, these standards are in the form of regulations such as the GDPR. Moreover, there are also certifications like ISO 27001, a standard for an organization’s IT risk management. 

Audits, Audits, and More Audits

It is not only the technology that needs to be reviewed but also the individuals. Inspections are needed to ensure that everything is in place and no data has been compromised. As discussed earlier, fraud is one of the most common issues in payroll security. Therefore, auditing individuals is a must to ensure the employees are complying and not doing any illegal activities.

Delegation of Tasks

Apart from having a good system of letting more than one person do payroll responsibilities. It is also wise to have different tasks for different people. This will create a barrier to information and can stop fraud from happening.


Each individual who handles payroll should only have limited access to information. They must not have all the data since this is dangerous and can cause the aforementioned issues. Moreover, it also protects them from being accused.

Payroll security is an important aspect of any company. It can have a large effect on the overall employee morale, brand image, and also plans. Moreover, common issues can be solved by maintaining systems and ensuring that data are sparse for any one individual.

Ultimately, payroll security should always be meticulously reviewed and ensure that everything is in proper order.

Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.


About Us

Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.


Subscribe to our newsletter and stay up to date with global changes

We are committed to protecting your privacy


Popular Post

Get an Employment
Budget Simulation

For Salary Simulation please fill in the following information:
special end of year promotion
Use our team of experts & you will enjoy:

* Subject to availability and terms and conditions of the promotion

<!– Calendly inline widget begin –>
<div class=”calendly-inline-widget” data-url=”” style=”min-width:320px;height:630px;”></div>
<script type=”text/javascript” src=””></script>
<!– Calendly inline widget end –>