Payroll Security Is More Important Than Ever
Payroll security relates to maintaining and implementing confidentiality and protection of the payroll records and the payroll staff as well. The payroll manager, human resource manager or accounting staff can carry out the duty of payroll security with the consent of senior management as well. Security measures for payroll records are normally done before the record is processed by the payroll processing centre. It is essential to prevent any unauthorized access by the employees and they have to be given the access codes during the record collection period. The employees have to be informed about their responsibilities and limitations to make it easier for them to comply with the payroll security rules.
Today, there are several payroll security procedures with payroll controls like the use of biometric technology, data capturing devices and encryption systems. Most of the latest payroll systems are designed to perform payroll security by the use of advanced communication protocols like emails, faxes, chat and VOIP among other options. Employees are asked not to make manual changes to the payroll system. Automatic submissions are also a great help in reducing payroll frauds.
A potential problem arises when an employee performs his duties and accidentally over posts his hours recorded in the payroll processor machine. This will automatically be deducted from the next pay cheque. It is advisable that when an employee receives his next pay cheque, he must sign the end of the cheque and return it immediately. In case of default, this will be considered fraud and will be dealt with seriously by the employer.
To prevent such situations from happening, it is very important that the payroll department adheres to all the payroll security procedures. There are several ways that the employer can follow to detect any fraudulent activities like ghost employee and avoid them. When an employee leaves the company, there should be proper communication between the employer and the payroll department regarding any changes or casual notices. The employees should be informed about all the changes that are going to be made in the payroll procedures.
Some small and medium-sized payroll providers have decided to outsource their payroll processing to third-party payroll processors because they are more cost effective. However, this has not reduced the level of awareness in the payroll departments about fraudulent activities. Small companies are still required to follow payroll security because the benefits of outsourcing these functions are not yet fully known. An unsupervised payroll processing is a time consuming task for the payroll department, which could ultimately result in fraudulent records. Some of the small payroll providers have introduced measures to prevent and detect any unauthorized entry of hours by employees.
Employees are asked to sign the pay slip and to date and file it within a specified period of time. All documents and records that are generated on the payroll systems must be protected and password-protected. All the employee's personal information must be protected. The only way of ensuring that all the records and information are secure is by having strong payroll security policies and procedures in place. This will ensure that no employee divulges this information to anyone, including the employer.
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