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Improving Compliance Management with PEO Support

Improving Compliance Management with PEO Support

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!

Regulatory requirements within your organization can feel overwhelming at times. From tax laws and workers’ compensation insurance to labor laws and safety regulations—there’s a lot to keep up with when it comes to compliance management. Compliance, however, is crucial not only for avoiding fines and penalties, but also for protecting your employees.

Professional employer organizations (PEOs) offer compliance management to help businesses stay ahead of regulatory requirements. Working with a PEO can be a great way to improve your compliance management and ensure that your business is covered where it matters. Let’s take a look at the role of PEOs in compliance support and the key areas of compliance managed by PEOs.

 

The Role of PEOs in Compliance Support

Working with a PEO means they’ll step in to handle the administrative side of your business. This gives you the opportunity to focus on your strengths—brainstorming new ideas for your company as well as handling the day-to-day operations that keep things running smoothly.

When you partner with a PEO, they play an important role in supporting your business with compliance. PEOs specialize in having a full understanding of local, state, and federal laws surrounding your business. They typically aren’t limited to certain states or locations. This means that if you have employees in different states, the PEO you work with should know the differences in regulations depending on where each employee is located.

Laws change fairly frequently, and it can be difficult to keep up with current requirements as a business owner with a lot on your plate. A PEO’s expertise is in staying up-to-date with current laws. When you partner with one, you won’t need to worry about falling out of compliance, no matter where your employees live.

 

Key Areas of Compliance Managed by PEOs

Business compliance encompasses several different areas. PEOs can help support your company with compliance with tax and labor laws, workers’ compensation, benefits, and risk management.

PEOs help ensure that payroll and company records are accurate, and that state and federal tax laws are met. It’s imperative that taxes are paid accurately and on time, as delayed payments could lead to hefty fines and penalties.

Labor laws are essential for protecting the rights of your workers. They help ensure safe working conditions, that minimum wage is met and overtime is paid when necessary, and they protect employees from discrimination and wrongful discharge. Partnering with a PEO is a great way to make sure your business is adhering to these rules and regulations.

PEOs also assist with worker’s compensation and other benefits. Not only do they help ensure your company is in compliance with state and federal laws, but they also help when it comes to choosing coverage for your employees. Workers’ compensation laws vary from state to state. They also differ depending on your industry and the category of employees you have—full-time, part-time, contract workers, or seasonal. The complexities of workers’ comp can make partnering with a PEO incredibly helpful for remaining compliant with regulations specific to your business.

Many PEOs also step in to help with risk management. They often implement safety training programs to keep your employees up to speed with rules and regulations. This is particularly helpful during the onboarding process for new hires—getting everyone on the same page and creating a solid foundation for safety in the workplace.

 

Strengthen Your Workforce with PEOPayGo’s Training Solutions

Investing in employee training is key to business success. PEOs provide innovative programs that enhance skills, boost confidence, and develop future leaders within your organization.

PEOPayGo offers expert training solutions to help your team grow and thrive. Contact us today to elevate your workforce!

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