Anytime you are handling someone’s personal information, it it’s important that you fully understand what is at stake. Employees trust employers to take extra care when they hand over such sensitive information about themselves. There should only be authorized personnel that are given the clearance to handle this type of information. When it comes to payroll data, it certainly falls into this sensitive information category. Mark Dicus & Company is here to talk about some of the problems that can arise when this information is mishandled.
What are the Possible Ramifications to Your Company if a Data Breach Occurs?
There should always be security measures and protocols that are put in place when it comes to the data used in payroll. It is vital that companies take privacy rights seriously. When they fail to do so, there are several different risks that can mean trouble for companies.
– Financial Losses: Anytime you have payroll data that is unsecured, and it gets into the wrong hands, it can mean financial losses for the individual and the company. Financial statements are tied to social security numbers, banking information, and more. The legal ramifications of a data leak can take significant resources from any company.
– Damaged Reputation: As a company, you don’t want to have the damage to your reputation that is sure to happen when there is a payroll data leak. When employees turn over this information to their employers, they are trusting that the information will be kept safe. When there are these breaches in secured data, it can tarnish your reputation as it indicates that you don’t take this information and privacy rights seriously. The morale of employees and strain on relationships with investors and clients can lead to a loss of business opportunities.
– Legal Issues: When an employee is affected by mishandled payroll data, there can be serious legal liabilities as a result. These legal battles can be a result of inadequate security measures that should have protected this sensitive information. Legal battles can be costly and time consuming. It can also damage a company’s reputation and result in financial strain.
– Disruption of Daily Operations: When a data breach takes place, it will likely pull resources away from daily operations to fix that breach. This can bring down productivity and put strain on a company’s budget. Employers might find that their customer satisfaction takes a hit when this happens too if it delays their services too much. This is why taking action to avoid breaches is always time well spent.
Tax Preparation, Filing, Planning & More in Salt Lake City, St. George, West Valley City, Provo, Orem, West Jordan & Greater Cedar City, Utah
If you have a difficult time staying on top of payroll, it might be time to turn it over to Mark Dicus & Company. We will handle all payroll data with the upmost care. We have security measures in place to ensure that all the information given to us is kept safe. We will take care of your payroll so that you can focus on other aspects of your business. Call us today!