Many of today’s businesses have made the switch to online payroll.
Online payroll comes with dozens of advantages over traditional payroll solutions. However, some of the biggest advantages revolve around security: online payroll is typically the most secure payroll option.
Are you feeling insecure about your company’s current payroll system? Do you want a system that offers more security at a lower cost? Here are a few reasons why online payroll is the safer, more secure option for your business.
Online Payroll Providers Have Firewall-Protected Servers
Your business is already protected by firewalls (right?). With online payroll, you’re doubly protecting your payroll data behind a firewall. All online payroll providers use top-quality firewalls to protect their server infrastructure. That makes it difficult for hackers to target your payroll data.
Online Payroll Providers Have OpenSSL Encryption
Most of today’s online payroll services use OpenSSL encryption standards or similar. That means your data is encrypted using 128-bit or 256-bit protection. A 128 bit ciphertext isn’t un-hackable, but it would take approximately 500 years to hack (and about a billion years to hack a 256 bit ciphertext) using brute force tactics.
What does this level of encryption mean? It means that every time you send and receive data from the online payroll servers, that data is coated with encryption. If someone were to intercept your connection and view that data, they would be unable to access it without the key.
That means your employee’s personal data and business financial information is remarkably secure.
Employees Can Self-Report Hours, or Employers Can Enter That Data Manually With Online Payroll
Some online payroll services allow employees to submit their own hours – which can reduce your workload every payroll period. Other payroll services don’t allow employee self-reporting.
Those that do allow self-reporting do not require it. So if you want to make employee hour reporting more secure, you can turn this feature off. Payroll services that allow employee self-reporting do not allow employees to edit any information aside from their hours – so you don’t have to worry about employees changing any other information while they have access to the service.
Two Factor Authentication
Two factor authentication is changing the way companies approach security. Thanks to two factor authentication, it’s becoming more and more difficult to hack into someone’s account – even if you know or guess the password.
Today, many payroll service providers offer two factor authentication for enhanced security. With two factor authentication, users must enter two things when they login to their account: a password they know and a randomly generated code they received through SMS text message on their phone.
Even if someone were to guess your password, they need to enter the secret code you received through your phone – something the hacker probably doesn’t have. For this reason, two factor authentication is an excellent way to protect your payroll account and safeguard employee data.
Payroll Smartphone Apps
If you’re away from the office, you can still constantly monitor your payroll account over your mobile device. All of today’s major payroll providers offer mobile apps for Android, iPhone, and iPad.
Some apps only allow you to view payroll data. Other apps let you run payroll and edit employee data. If you’re the type of person who likes to check on the office when you’re on vacation or away for the weekend, then these mobile apps can ensure your security is never compromised.
Avoid Tax Penalties With Online Payroll Providers
Online payroll software is a safer, more secure way to do business because you can easily avoid tax penalties. Thanks to online payroll software, many of which you can try for free you may never have to worry about tax penalties again.
Some top payroll services even guarantee that you won’t receive tax penalties. On its Full Service plan, for example, Intuit Online Payroll guarantees no tax penalties.
Ultimately, all of these factors make online payroll the safest and most secure way of running payroll.