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Cost Management Strategies in Workers’ Comp Through PEO Partnerships

Cost Management Strategies in Workers’ Comp Through PEO Partnerships

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!

Workers’ compensation insurance is an essential part of any business—it’s legally required in most states and it’s crucial for keeping your workers protected. Whether you have one employee or one hundred, ensuring that they’re covered in the event of an accident is imperative. Workers’ comp coverage can help with medical expenses, rehabilitation costs, and lost wages during the recovery process.

Not only does workers’ compensation help protect employees who get injured at work or become ill as a direct result of the job, but it also helps protect you and your business. Without workers’ compensation, if an accident happens, you could be required to pay out-of-pocket for what would otherwise be covered by insurance.

Workers’ comp is a necessity for your company, but it can also be costly. One cost management strategy for workers’ compensation is to partner with a professional employer organization (PEO) for your coverage. Let’s take a look at how PEOs help manage workers’ compensation expenses and cost-reduction strategies with PEO partnerships.

 

How PEOs Help Manage Workers’ Comp Expenses

When you partner with a PEO, that PEO and your company enter into a co-employment relationship. The PEO steps in to take care of administrative tasks like payroll, workers’ compensation, and risk management while you continue to focus on the day-to-day operations of your business.

When it comes to workers’ compensation insurance, each company the PEO works with is grouped together in one large pool of employees. This means the PEO is able to secure fantastic coverage at a more affordable rate than what you would normally see. The more employees the PEO partners with, the lower your premium cost will be.

Working with a PEO also means you may be able to avoid paying large lump sum deposits upfront. The PEO will handle these costs, and you’ll pay the PEO over time.

 

Cost-Reduction Strategies with PEO Partnerships

There are several cost-reduction strategies that come with PEO partnerships—from educating employees on workplace safety to offering pay-as-you-go insurance programs.

First and foremost, PEOs aim to create safe working conditions for their client companies. Risk management is a large part of what PEOs bring to the table as a co-employer. They create and implement safety training programs for new and existing employees to help educate them on workplace safety. PEOs also specialize in compliance with state and federal regulations, so they know what’s needed in order to keep your company up-to-par with current labor and safety laws.

Creating a safe work environment is crucial for reducing workers’ compensation claims. By keeping the number of claims at a minimum, premium costs will also remain low.

Beyond claim reduction, PEOs offer pay-as-you-go programs that are great for small or medium-sized businesses with contract-based workers. While traditional workers’ compensation may make sense for larger corporations, having fewer employees or employees that work on a project-by-project basis tends to require a more customized approach.

With a pay-as-you-go program, you only pay for what you need when you need it. As the employer, you can choose the exact coverage that fits best for your industry and the category of workers you have. You can also choose the duration of time your employees will have coverage so that you aren’t paying for unnecessary insurance between projects.

PEOs also administer payroll, so you won’t need to worry about surprise costs when audit season arrives. When you have the expertise of a PEO on your side, you can rest assured that the most cost-effective strategies will be put in place when it comes to workers’ compensation for your company.

 

Reduce Workers’ Comp Costs with PEOPayGo

Managing workers’ compensation costs while keeping employees protected is crucial for any business. Partnering with a PEO offers strategic cost-saving solutions, ensuring the best coverage at the most efficient rates.

Maximize your savings and streamline your workers’ comp management with PEOPayGo. Contact us today to get started!

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