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5 Reasons Your Business Should Consider a PEO for Workers’ Compensation Management

Focused young woman working on a laptop, highlighting remote payroll management solutions.

Why Payroll Is a Prime Target for Cyberattacks

 

The digital space is continuing to grow and evolve every day. With so much of life conducted online, it’s more important than ever to protect your personal information from vulnerability.

 

Payroll systems, however, have become a prime target for cyberattacks. They contain some of the most confidential employee information that a business manages—including Social Security Numbers, tax identification numbers, addresses, salaries, and direct deposit information. A single breach can expose hundreds of records—if not more—leading to financial fraud, identity theft, and compliance violations.

 

Cybercriminals may not even need to break into a company’s system to gain information. They may simply trick an employee into handing over credentials or clicking on a malicious link, making payroll fraud prevention crucial for any business. It’s essential for business owners, HR managers, and IT directors to know how to protect their employees and prevent data breaches.

 

Let’s dive into the types of threats facing payroll systems today, what businesses risk without proper security, and how PEOPayGo prioritizes cybersecurity in payroll services.

 

Types of Threats Facing Payroll Systems Today

 

There are many types of threats facing businesses that may not even require a hacker to gain access to their payroll system. Let’s take a look at some of the most common cybersecurity threats.

 

Phishing

 

Phishing scams occur when cybercriminals trick individuals into providing sensitive information. Many attackers will impersonate someone from the HR or IT department and send fake emails to employees to steal their login credentials.

 

Ransomware

 

Hackers may use malicious software to lock payroll systems until a ransom is paid. If the company chooses not to pay the ransom, the cybercriminals may leak the stolen data.

 

Insider Threats

 

Insider threats come from the organization itself rather than someone outside of it. Unhappy employees or contractors could misuse their access to payroll data.

 

Insecure Integrations

 

In some cases, attackers find poorly secured third-party apps connected to the payroll systems and take advantage of those vulnerabilities to get the information they want.

 

Weak Passwords

 

When employees create weak passwords or fail to use the multi-factor authentication, it makes it far easier for hackers to guess their credentials and break in.

 

What Businesses Risk Without Proper Security

 

A lack of security can have a major negative impact on a company. Here are some of the things that businesses risk when they don’t have proper security in place.

 

Financial Loss

 

Companies can face significant financial losses during an employee data breach. From incident response and legal fees to lost revenue and reputational damage, the impact of financial loss on a company can be drastic.

 

Employee Trust

When personal information is compromised, employees may lose confidence in their employer. When trust dwindles in the workplace, employees tend to walk away.

 

Operational Downtime

 

The financial loss and legal consequences that stem from compromised payroll systems could result in payroll delays and operational downtime.

 

How PEOPayGo Prioritizes Cybersecurity in Payroll Services

 

Professional employer organizations (PEOs) take on the administrative tasks of businesses like payroll, workers’ compensation, benefits administration, and risk management. Because they’re regularly handling sensitive employee information, cybersecurity is essential. Here’s how PEOPayGo prioritizes security in their payroll services.

 

End-to-End Encryption

 

This is a security method that ensures when messages are sent via their platform, only the sender and receiver can read them.

 

Multi-Factor Authentication

 

By requiring more than one form of identification, multi-factor authentication ensures only verified users can access payroll systems.

 

Regular Security Audits

 

Trusted PEOs want to make sure they’re in compliance with industry regulations and best practices. PEOPayGo undergoes third-party security audits in order to maintain that standard.

 

Role-Based Access Control

 

Ensuring permissions are granted based on user roles means a lower possibility of security threats from within the company.

 

Employee Training and Awareness

 

PEOPayGo implements training programs that help keep employees educated on how to spot phishing attacks and manage payroll securely.

 

Secure Your Payroll Data with PEOPayGo’s Trusted Protection

 

A payroll breach can be detrimental to your company. When you partner with a trusted PEO like PEOPayGo, you can rest assured that your systems are secure. If you’re ready to secure your payroll data with PEOPayGo, reach out to their team of experts today.

 

Contact us today to get the coverage and support you need!

As a business owner, you most likely have a lot on your plate at any given moment. Not only are you the creator, critical thinker, and problem solver behind the scenes, but you also have to consider the day-to-day operations of your business as well. It can be overwhelming for one person to handle, so being able to delegate or outsource certain tasks is crucial to keep things running smoothly.

 

Administrative tasks like workers’ compensation management can be complex and time-consuming, but there are solutions that can help. Professional employer organizations (PEOs) will often take on the duties of workers’ compensation, payroll, or human resource services. Let’s dive into 5 reasons your business should consider a PEO for workers’ compensation management.

1. You can focus on growing your business

Business strategy and growth shouldn’t have to fall to the wayside because of the administrative tasks that need regular attention within your company. Handling workers’ compensation can be tedious and time-consuming. By outsourcing that aspect of your business to a PEO, you can save valuable time and energy to focus on the areas of your business that need it the most.

2. Workers’ compensation can be complex to calculate

Calculating workers’ comp can be somewhat complex. Premiums will vary according to the employee’s classification, total payroll, the type of industry you’re in, and any previous claims history. While there’s a lot to take into account, working with a PEO can alleviate some of the overwhelm.

 

In addition to relieving some of the stress that comes with workers’ compensation claims, a PEO can help you save money in the long run. When you trust the professionals with the calculations, you can rest assured that no mistakes will be made. When it comes to workers’ comp calculations, getting it right the first time is incredibly important—otherwise there could be financial consequences.

3. PEOs will prioritize safety trainings for your employees

In many cases, PEOs will provide safety training programs that could help prevent future accidents on the job. Risk management services are crucial not only in helping keep your employees safe, but also in preparing for what to do in the event an accident does occur at work. Additionally, if an incident does take place, a PEO can help reintegrate the injured employee back into the workplace after their recovery. They can ensure the employee has had the financial and physical support they need before coming back to work.

4. You can tailor your workers’ comp to meet your company’s needs

One of the best things about partnering with a PEO is that typically you can tailor your workers’ compensation to meet your company’s specific needs. This is particularly great for small and mid-sized businesses that may not need the standard coverage provided to larger corporations.

 

PEOs often offer pay-as-you-go workers’ compensation programs, which can also be beneficial for companies that hire workers on a project-by-project basis. Working with a PEO for workers’ compensation management means you’ll be able to adjust your plan according to the duration and amount of coverage you need. This means you’ll have the coverage you need when you need it, without having to pay for something you don’t use.

5. You’ll have the expertise and experience of risk management professionals

Ultimately, working with a PEO means you’re leaving the workers’ compensation aspect of your administration process to a team of experienced professionals. You won’t need to spend tons of time figuring out how to run that aspect of your business—-you’ll simply need to find a PEO that checks all the boxes of what you’re looking for.

 

No matter what type of business you own or the size of your company, working with a PEO could be a great way to focus on what matters most in your business. You’ll have more time and space to work on growing your business, you won’t have to worry about calculation errors, your employees will have regular safety training programs, you’ll get a workers’ comp plan that’s unique to what you need, and you’ll have the expertise and experience of professionals in your corner. Keep these 5 reasons in mind when you consider working with a PEO for workers’ compensation management.

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