Five Easy Ways to Keep Your Payroll Secure

By Joseph
February 8, 2022

Maintaining payroll integrity and preventing fraud are two top priorities for small businesses. When payroll was managed entirely through paperwork, the likelihood of fraud was much higher, but now thanks to digital payroll software such as UZIO, the risk is much lower. If you haven’t already, you should probably consider making the switch! Here are five ways that a digital payroll system can help keep your pay records accurate and the information secure.

Also Read: A Guide to QuickBooks Error 15222

1. Digital Records – The First Line of Defense

Unfortunately, not every person in the building can be trusted with sensitive information. Maintaining physical records could spell out big trouble for your business since they can easily be copied, altered, or even stolen! Closed doors and locked file cabinets won’t deter the most dedicated wrongdoers, but a digital payroll system will! Unlike physical records, digital files aren’t vulnerable to physical theft, which eliminates the risk of physical theft from your company or business. Most payroll software will also keep a log of employees who have recently accessed information, further deterring any potential thieves since they know they will quickly be caught.

2. Passwords – Helping You Stay Protected

A lot of digital security relies on selecting strong passwords to protect your accounts, systems, and files. Often, people will select passwords that are easy for them to remember, such as important dates, the names of their significant other, or common phrases. Your employees must be able to remember their password (to limit the amount of password resets needed), but using these basic password techniques leaves you vulnerable to digital theft. Instead, we recommend changing your passwords every couple of months and requiring all of your employees to use passwords that meet the following requirements:

  • Are not directly related to any locations/people in their lives
  • Contain uppercase letters, lowercase letters, numbers, and symbols
  • Are at least 8 characters long (more is better)

3. Limited Access – Only Share What’s Needed

Payroll software like UZIO allows you to control which employees have access to what files. This is important because allowing employees access to sensitive information not directly related to their job duties poses a significant security risk. Although it may take a little bit to set up these permissions, it is well worth the amount of time invested to ensure your payroll system is secure. If needed, you can always change these permissions later on. For example, if an employee needs temporary access to a sensitive file, you can easily update the permissions to allow them to access the file(s). Just remember to revoke the permission after the deed is done!

4. Geofencing – Verify Accurate Hours

For employees, an easy way to get paid more than they’ve earned is by manipulating the time on their timesheets. This may involve physically rewriting clock in/out times or simply having another employee sign in/out for them. As an employer, payroll fraud is certainly something you want to avoid, as it makes your records invalid and can result in significant losses over time. However, unlike physical timesheets, digital records can’t easily be altered. They keep an accurate log that records any changes or adjustments made, and programs like UZIO even include a feature called geofencing. Geofencing takes an employee’s GPS location (often from an employer-supplied mobile device) and records it when they clock in/out. This ensures that employees are only compensated for the time they were at work, and prevents them from clocking in/out when they’re no longer on the job.

5. Automated Calculations – Because Manual Means Mistakes

Overcompensation isn’t always malicious. Sometimes, it’s simply the result of manual errors! When you keep physical or digital records that are created by people, eventually you’re bound to encounter an inaccuracy. One error may not be much of an issue, but it quickly compounds over time, potentially costing you a lot of money in the long run. You can easily prevent this by using a digital payroll system, which automates time tracking and payroll calculations. Instead of manually calculating payroll, your payroll will be handled by an automated system that takes time/attendance, pay rates, taxes, deductions, and other factors into consideration to produce accurate, timely paychecks for your employees.

Now that you know how payroll software can help keep your business safe, we’re sure you’ll make the switch (if you haven’t already). If you’re not quite sure if payroll software is the right choice for your business, feel free to head over to, where you can enjoy a free 30-day trial of our All-In-One payroll system—no commitment required!

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