Employee Privacy: Is Payroll Software a Threat to Data Security

December 10, 2018

It doesn’t take a tech expert to realize that there are risks associated with any technological advancement. When it comes to your small business, news reports about hackers compromising data security may be enough to scare you away from electronic payroll services like payroll software.

Maintaining data security for employees should be at the forefront of every responsible business owner’s mind, but is payroll software threatening enough to avoid completely? Here’s everything you need to know.

Potential Risks

Timecards and payroll that are logged on paper and locked away in a filing cabinet at your office may appear safer than payroll software because they only exist in one place.

Payroll that is accessible through software provides convenience because it can be accessed nearly anywhere and by a larger number of people. Consequently, using a payroll software can sometimes allow employees to circumvent a payroll professional to access their own information, removing one level of security.

Using a payroll software also means that important employee data like social security numbers, personal addresses, and even medical information are all stored on an online server.

Any employer would be wise to question whether or not the server on which their employees’ data is stored is secure enough to prevent access from outside entities.  


Considering the risks associated with payroll software doesn’t make an employer paranoid – it makes them a discerning business owner.

That being said, these risks do not mean that payroll software is fruitless gamble. The discerning business owner has a number of ways in which they can safeguard against the potential risks and reap the benefits of payroll software.

Here are a few measures you can take to evaluate the safety of your payroll software and maintain security:

  • Test out payroll software by creating fake employees before entering real ones
  • Restrict the numbers/types of employees who have access to online payroll
  • Restrict what kind of information can be accessed in an employee portal

For more ways to ensure you are choosing a secure payroll software, check out this article.


All payroll service are not created equally and it’s important that you choose the right one. The best payroll services will provide peace of mind that your employee’s information is processed with efficiency and security.

The benefit of choosing payroll software like iSolved is not only the software itself, but the real representatives attached to it. Employers who choose iSolved are not purchasing a robotic program operated solely by an algorithm. On the contrary, they are enlisting the services of a team of payroll and HR experts who implement meticulously curated technology to best serve every individual business.

iSolved is a payroll service that offers employers a number of options to customize their payroll software to their business. With the assistance of the payroll experts at Commonwealth Payroll & HR, you have control over what aspects of your business are incorporated into the program. You can rest easily with the knowledge that your data is being monitored and managed by an actual person.  

Payroll software could be the key to increasing the efficiency of your small business payroll and reducing the number of responsibilities for your payroll professionals.

If you are still skeptical of online payroll, don’t just take our word for it – give the payroll experts at Commonwealth Payroll & HR a call today at (978) 599-1500. Our experienced professionals are available to answer any questions you may have and to help get your business on the road to excellence.

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