Skip to content

The Role of PEOs in Managing Seasonal Workforces: Payroll and Workers’ Comp 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 likely wear many different hats—from being the creative behind your product or service, to handling the day-to-day administrative tasks that keep your business running smoothly. With so much on your plate, however, it’s crucial that you’re able to focus on what you do best.

If you’re a business owner with seasonal employees, you may feel overwhelmed at the thought of payroll and workers’ compensation. Professional employer organizations (PEOs) step in to help with administrative work so that you can give your energy and attention to the growth of your business. Let’s dive into how PEOs can help manage your seasonal workforce with effective payroll and workers’ comp solutions.

Challenges of Managing Seasonal Employees

 

When it comes to managing payroll and workers’ comp for seasonal employees, classifying your workers correctly is essential. Are you hiring them as an employee for the season, or are they an independent contractor for the duration of a specific project? This will likely affect their tax deductions and benefits, so getting clear on that first and foremost is important.

Beyond employee classification, there are other challenges that might arise with seasonal employees. While full-time employees typically have set schedules, seasonal workers’ schedules tend to vary. This somewhat more complicated scheduling and time-tracking process can lend itself to payroll errors when done manually.

While many companies offer an in-depth onboarding process for full-time employees, some businesses may not prioritize that same process for short-term workers. No matter what type of worker you’re hiring, an informative and welcoming onboarding process is essential for employee engagement and retention.

The Role of PEOs in Seasonal Workforce Management

 

A great PEO can be incredibly beneficial when it comes to seasonal workforce management. They handle the administrative side of your business like payroll, workers’ compensation, and other human resource services so that you can focus on building relationships with your employees and growing your business.

PEO services start with the onboarding process for your new seasonal employees—handling paperwork, state and federal compliance, and adding new hires into your system. Working with a PEO also means your payroll will be automated, which is particularly important for the complexities of seasonal workers’ schedules.

Payroll Solutions for Seasonal Workers

 

Managing seasonal workers can be complex, so having effective payroll solutions is crucial to keep things running smoothly. Because seasonal workers tend to have varying schedules and limited hours, paying short-term workers may not feel as straightforward as full-time employees. PEOs like PEOPayGo offer seasonal payroll management like automatic payroll, HR resources, and an employer dashboard you can access at any time.

Workers’ Comp for Temporary Employees

 

Workers’ compensation is essential for any business, no matter how many employees you have. Traditional workers’ compensation may make sense for companies with full-time employees, but for short-term workers or independent contractors, a different solution might be the best option.

PEOs offer pay-as-you-go programs that allow you to tailor workers’ comp to meet the specific needs of your employees and of your business. This means you’ll only pay for what you need in terms of workers’ comp insurance, and your seasonal workers will have the coverage they need for the duration of their contract.

Benefits of Outsourcing HR for Seasonal Staff

 

Outsourcing HR for seasonal staff can be incredibly beneficial, giving you as the business owner time to focus on strategy and growth, and ultimately streamlining the process to help you save money and increase efficiency.

 

Without the support of a PEO, there’s more room for error when it comes to payroll and workers’ comp. From wasting resources correcting payroll errors to negatively impacting employee morale when mistakes are made, manual payroll can be costly and time-consuming.

When you outsource HR for your seasonal workers, you can rest assured that HR experts will handle your payroll and workers’ compensation systems with accuracy and efficiency.

 

Simplify Seasonal Workforce Management with PEOPayGo

 

Managing a seasonal workforce comes with unique challenges, but partnering with a trusted PEO can help you save time, reduce costs, and streamline administrative tasks. PEOPayGo offers flexible solutions to keep your business running smoothly year-round.

 

Don’t wait—optimize your workforce management today. Contact us to get started!

Related Articles:

Let our Instaquote do all the work

We don’t need much information and it takes 2 minutes.
Our software does all the work for you.