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Are online payroll services as secure as the real deal?
Doing my company's payroll online seems a lot easier than what I'm doing now. But I'm nervous that it's not secure. What's the deal on online payroll security? Can I trust online payroll services?
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2 Answers
Hi Nancy,
Great question - certainly news of payroll processing company PayChoice getting hacked in October has set off alarm bells for many of us. But I think a question that every HR manager needs to ask is, 'How secure is my current method of payroll?' Yes, online payroll processing systems present a risk. But I'm not convinced the age-old practice of storing W-2s in filing cabinets is any more secure.
Cindy
The question is somewhat moot, because the only choice available today, unless you want to use older technology, is a web-based payroll provider. Every new payroll system that's been written in the last decade is web-based. Most national online payroll providers are generally very secure and have invested significantly in securing their clients data. What happened with Paychoice was an anomaly and speaks more to their specific deficiencies than those of the industry as a whole.
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