Managing a payroll system involves processing a considerable amount of personal information regarding your organisation’s employees. This information, including birth name, bank account information, home address, past payslips, and identification number, is sensitive and can result in severe consequences in the wrong hands.
The Personal Data Protection Act (PDPA) provides a regulatory standard of protection for any personal information in Singapore. This act protects us from accidents, prying eyes, loss, and misuse.
Does PDPA affect payroll?
Because payroll involves the process of personal information, it is one of the critical responsibilities of HR to ensure that the company is in line with the PDPA. Under the PDPA, companies are obligated to ensure they meet these nine requirements: companies risk being fined up to SG$1m if PDPA has been breached.
1. There must be consent before collecting and retaining an individual’s data.
2. Companies can only use personal data if the purpose it’s used for is reasonable.
3. Companies must clearly state the reason before collecting personal data.
4. An individual should have access to any personal data held by the company.
5. Companies should ensure that the employee’s data is complete and accurate.
6. Companies must implement security measures to ensure that collected personal data are secure.
7. Companies can only keep personal data for business or legal purposes for a limited period.
8. When personal data is sent out of the country, companies must ensure that the receiving organisation keeps to the standard of protecting personal data, similar to Singapore.
9. The company must ensure proper documentation of procedures and policies relating to PDPA, including appointing a Data Protection Officer whose number must be readily available.
HR departments must be located in the most secured areas, with open desk rules. For companies that outsource their HR and payroll operations to third-party service providers, only needed data must be given to them.
Implementing payroll management software helps as certain features such as password protection, secure storage, and access control ensure that companies adhere to the PDPA’s security requirements.
Protection of payroll data
Conducting a risk assessment allows the company to thoroughly check the potential users, systems, and processes, which will help identify any possible risk to the payroll data. By doing so, companies can better control and create rules and policies that will aid them. Companies can better secure their payroll data by:
1. Allowing permitted staff access to the payroll system.
2. Minimising conflict of interest and fraud risk with segregation of duties within the payroll team.
3. Confirming changes, data input and payment through peer review and approval.
4. Review past payroll control reports such as new hires, new bank accounts, and other data.
5. Implementing proper keeping of data.
6. Categorising data security according to the sensitivity of the information.
7. Ensuring that security software such as antivirus and firewalls are continuously updated.
If only one person manages the company’s payroll system, ensure that there is always a plan B in situations where that person is unavailable. Adding on to the many measures is the importance of ensuring proper storage of backup copies of the payroll data. It is crucial that the company backs up their payroll data and keeps the copy on a secure site.
Good data protection is vital in any company. Here at Kayaroll, we desire a world that runs smoother. We are here to provide SMEs and their employees with the necessary solution to make that happen.
Your payroll data involves a vast amount of personal data which contains sensitive information. Kayaroll aims to save your money and time while staying compliant with the Government reporting requirements. We currently have a limited software launch offer in which up to 100 employees can get our payroll software for free. So, what are you waiting for? Get Kayaroll, take charge of your payroll safely and securely! Learn how you can make your payroll data secure and protected with the best payroll software in Singapore.