The U.S. Job Openings and Labor Turnover report shows that 4.2 million Americans quit their jobs in June 2022. A few companies are conducting mass layoff exercises as cost-cutting programs. In contrast, others have a problem retaining great talent. Organizations that fall into the latter cannot afford to be lenient with their payroll management programs. They must either have a solid internal payroll management team or partner with a reliable third-party payroll management company. Such partnerships help an organization in the following ways:
The top payroll management companies often manage payrolls for hundreds of thousands of employees across large enterprise customers. These companies cannot compromise on their compliance or security standards. If you run one such payroll management company, follow these tips to improve your security and payroll management processes.
Most organizations rely on the ACH network to pay their employees with its direct deposit feature. Payment processors with reliable ACH technologies help these organizations set up recurring payments for their clients on a weekly/monthly schedule. These payment processors also bring technologies like SMS payments and email invoicing to automatically generate invoices for vendors and stay in touch with employees through text messages.
Payroll management companies should ideally adopt multiple payment methods to accept payments from their clients. Adopting payment solutions like ACH and credit/debit cards is a must.
Tokenization helps payroll management companies securely store payment and employee bank account information. Most tech-savvy payment processors help payroll management clients adopt the best risk management practices and cybersecurity frameworks with tokenization. Learn how data tokenization and encryption help organizations minimize cyber-attacks and data breaches.
Payroll management companies should practice safe data-sharing practices with their clients. Here are a few best practices to follow:
Limiting access to sensitive payroll and bank account information is the best way for an organization to prevent potential data leaks. Ideally, only a limited number of individuals at the payroll management company should have access to payroll software and final authorization tasks.
Fail-safe technologies can help payroll management organizations recover lost data quickly in the event of a security breach or human error. These companies should prepare for the worst-case scenarios and create backups for all payroll data in a safe encrypted location.
Periodic security maintenance of the payroll processing systems helps the company identify potential loopholes early on. They should ideally partner with a cybersecurity firm or ethical hackers who can test the safety of their systems with ethical brute force and DDOs attacks.
Payroll managers should partner with payment processors that offer multiple innovative, scalable payment technologies that fall under the protection of the same cybersecurity measures. Such partnerships help them scale rapidly without spending additional time and human resources on enterprise risk management and comprehensive cybersecurity testing.
Quick-view reporting and dashboards help payroll managers keep tabs on their processes in a single window. A comprehensive dashboard monitors various aspects of the payment processes and flags discrepancies quickly. Such quick-view extensive dashboards help them take necessary measures to streamline and process payments via alternate methods in case of a payment method failure.
Staying up to date with the latest payroll tax policies helps the company stay compliant while processing payroll on behalf of its customers. Most nested third-party payroll processors need to have individual contracts with the payment processor, ODFI, and the client organization. Learn more about nested-third party senders and service providers.
Transparent pricing structures help payroll management companies establish strong relationships with their clients. The three primary components of such structures include:
A digital trail of transactions helps the company manage financial disputes and identify hidden costs. They also help with reporting and dashboard creation for their clients.
Partnering with a reliable payments processor like iCG should be on the top of your cybersecurity and management lists. Here are some of the key benefits of partnering with us.
iCG simplifies payment processing for payroll management companies of all sizes. Our innovative payment solutions are heralded as next-gen technologies that streamline recurring payroll operations for automated transfers. We also uphold the latest Nacha-compliant security standards to help with direct deposit transfers. Request a callback from our relationship managers to partner with us today.