GDPR and Payroll
1. What is GDPR?
GDPR is the new General Data Protection Regulation that applies to any company or company’s affiliate operating in the EU or any company that processes personal data of EU resident individuals. It stipulates more stringent requirements personal data of individuals with whom it conducts business (i.e. its customers, employees, partners, etc.), imposing the biggest changes in data privacy regulation in the last 20 years. It goes into effect on May 25, 2018. Companies who are non-compliant with GDPR run the risk of hefty fines, up to 4% of revenues or €20 M, whichever is larger. You can learn more about the new regulation here.
2. What is GDPR’s Impact on Payroll?
Payroll deals with personal information all of the time (e.g. names, addresses, social security numbers, employee contact information, bank data, social security data). So treating payroll information with privacy and confidentiality is critical. The new GDPR requirements therefore are particularly applicable to the Payroll function and places a great burden on every Payroll team to be compliant. For many companies this means reviewing their payroll processes and controls and implementing changes to communications and data handling processes, platforms and tools to reach the new GDPR compliance standards. For example, emailing payroll data between the customer organization and the local payroll provider or storing it on local FTP servers or Sharepoints will no longer be acceptable to demonstrate stringent data protection. At a high level, every company – small or large – needs to be able to demonstrate strong controls in place around:
- End-to-end Data Security Measures
- Data Access Controls
- Data Retention & Purging Capabilities
- Employee Data Request Procedures
- Data Correction Capabilities
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3. How can Payzaar help
Payzaar has been designed to give multi-country organizations better controls and transparency to manage their payroll operations, data flows and communication via one consistent, central platform. By using Payzaar as a central platform to manage your local payroll operations you automatically apply strong data controls that help you to ensure compliance with GDPR. Payzaar gives you GDPR compliance in a box:
Best of all, we can implement Payzaar within a matter of a few weeks across your entire organization, giving you strong, GDPR-compliant data protection controls for all your country operations without having to go through the time-consuming and difficult exercise of assessing and adjusting processes and procedures at the local level. With our central platform we automatically put in place the required data controls to make your organization GDPR compliant. Payzaar – GDPR compliance in a box!
