Payroll - Safeguarding your business

In recent months, several large UK companies have fallen victim to cyber-attacks, highlighting the urgent need for resilient security measures. While cybersecurity defences are crucial, payroll systems require more than just digital protection; they must incorporate multi-tiered contingency plans to safeguard compliance and mitigate risks that could threaten employee pay.

With payroll often representing the largest expense for most organisations, ensuring the smooth and timely delivery of wages demands careful planning and robust processes. A proactive approach to payroll security and disaster recovery is not just a precaution, it is an essential strategy for financial stability and workforce trust.

Digital Security: Protecting Payroll Data

• Data Backup: Ensure your payroll system has robust data recovery capabilities, whether stored on an on-site server or a cloud-based solution. Regularly testing backups is essential to guarantee reliability.
• Multi-Factor Authentication: Strengthen security by implementing multi-factor authentication (MFA) across both company and employee payroll portals. This adds an extra layer of protection against unauthorised access.
• Secure Data Sharing: Minimise the use of email for sensitive payroll information. Instead, utilise encrypted portals for secure data exchanges to significantly reduce phishing risks and prevent fraudulent file downloads

Payroll Health Check: Reviewing Compliance & Processes

• Payroll Accuracy: Ensure all employees receive the correct salaries, deductions, and benefits as outlined in their contracts. Conduct a thorough review of all HR and payroll systems, verifying payroll payments, deductions, absence pay, tax calculations, and pension contributions.
• Legal Compliance: Ensure payroll processes align with UK employment laws, including tax regulations, statutory sick pay, maternity leave policies, and GDPR requirements for handling personal data securely.
• Employee Records: Confirm that all employee classifications are accurate and that employment contracts reflect up-to-date payroll obligations. Proper record-keeping supports audits and legal compliance.
• Data Integrity & Security: Evaluate cybersecurity protocols to safeguard payroll data against breaches and unauthorised access. Assess how data is tracked, stored, and shared across internal teams, ensuring secure transfer methods to minimise risks.
• System Efficiency: Review payroll software, automation tools, and integration with finance and HR systems. Streamlining payroll processes helps reduce manual errors, improves payment accuracy, and enhances operational efficiency
• Disaster Recovery: Implement a plan to include alternatives in the event of disruptions. A well-structured recovery plan includes data backups, contingency workflows, compliance checks, and secure payment alternatives to prevent delays in employee wages.
• Single point of failure: In payroll, it occurs when a system, process, or individual is solely responsible for payroll operations, meaning any disruption could stop payments entirely. To mitigate this risk, businesses should distribute responsibilities, collaborate with a payroll provider, and implement structured process guides to ensure continuity and resilience.

Protecting your payroll is about more than just security, it’s about ensuring financial stability, regulatory compliance, and uninterrupted pay for employees. By implementing robust safeguards, structured audit processes, and a disaster recovery plan, businesses can avoid costly disruptions and maintain workforce trust.

Payroll can be complex, but we’re here to help. From compliance to contingency planning, our tailored support and health checks ensure your payroll remains protected, resilient, and secure, giving you confidence in every pay cycle.