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Leveraging PEO Services for Comprehensive Benefits Administration

Leveraging PEO Services for Comprehensive Benefits Administration

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!

If you own a business, having a fantastic benefits package is essential for keeping your employees satisfied at work. Comprehensive benefits help boost employee morale and ultimately increase employee retention, making them a great financial decision for your company.

As important as benefits are, if you own a business or manage a human resources department, you also know how complex they can be. Choosing packages, handling workers’ compensation claims, and ensuring compliance with state and federal regulations can be overwhelming—particularly when your hands are full with other tasks.

Partnering with a professional employer organization (PEO) can be the perfect way to get the support you need when it comes to comprehensive benefits administration. Let’s take a look at the role of PEOs in benefits management, the pros of outsourcing benefits administration to a PEO, and how outsourcing differs from managing benefits in-house.

The Role of PEOs in Benefits Management

As a business owner or HR manager with a lot on your plate, having support from a PEO can be crucial for the success of your business. PEOs specialize in the administrative tasks of a business—from onboarding and payroll to benefits administration and risk management.

When it comes to benefits management, PEOs handle everything from the initial selection of packages to enrolling employees in plans and processing claims. Their experienced team members will also be available to answer any questions you or your employees may have along the way.

Whether you have an HR department or not, a PEO can be a great asset to your company. For companies that do have HR, working with a PEO can take some of the burden off of administrative tasks and allow HR managers to focus on employee satisfaction and retention.

Pros of Outsourcing Benefits Administration to a PEO

Offering comprehensive benefits to your employees is incredibly beneficial for employee retention. If you’re a business owner, you likely want to offer your employees the best options possible, and partnering with a PEO can help make that happen. Because PEOs work with many different companies, they’re able to negotiate lower rates with insurance companies. These more affordable group rates mean PEOs can get high quality coverage for your employees at a much more reasonable price.

Additionally, ensuring compliance with state and federal labor laws is more streamlined when you work with a PEO. PEOs make it a priority to stay up-to-date with any changes in rules and regulations, both locally and federally, which means you never have to worry about non-compliance.

Outsourcing your benefits administration also means that the PEO you’ve partnered with will also handle any insurance claims, helping to streamline the process for both your employees and your business.

PEO-Managed Benefits vs. In-House Management

There are a few key differences when it comes to PEO-managed benefits compared with benefits managed in-house. First and foremost, PEOs have the ability to negotiate lower rates with insurance companies in order to provide premium coverage at an affordable price.

When you partner with a PEO for benefits administration, it gives your human resources department more space to focus on employee satisfaction. Your HR team can focus efforts toward recruiting and hiring new employees that fit well with the culture of your organization, and ensuring they feel supported as they’re welcomed into the company.

Depending on the size of your company and its specific needs, working with a PEO may also mean you don’t need an HR department at all. If you’re a small business owner, this can be a great option to help save money in the long run, and allow you to give more energy to the core mission of your organization.

Maximizing Benefits with PEO Services

No matter the size of your company, working with a PEO can help you maximize your benefits. From negotiating lower premium costs and helping ensure compliance with rules and regulations to saving you time and money long term, having the support of a PEO can make a huge difference in the success of your company.

If you’re ready to outsource your benefits management and help streamline the administrative side of your business, reach out to the experienced team at PEOPayGo today!

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