When processing payroll it is vital your processes are GDPR compliant to protect the privacy and security of personal information of employees, sub-contractors, contractors and suppliers. Let’s explore the steps to ensure GDPR compliance in payroll processing that will protect your organisation from penalties and fines.
What is GDPR and why is it important in payroll processing?
General Data Protection Regulation (GDPR) has revolutionised the way businesses within the EU and those who process the personal data of EU citizens. Firstly, it is vital to have an understanding of what GDPR actually is. GDPR is a set of regulations introduced in 2018 to safeguard the personal information of individuals. This includes names, addresses, tax information and more. All of this personal data is instrumental in the payroll process and therefore it is vital your payroll processes are GDPR compliant.
How to ensure GDPR compliance in payroll processing?
Here are a few of the steps you can take to ensure GDPR compliance for your business:
- Carry out data mapping and regular audits to understand how data moves within your organisation and between your suppliers.
- Obtain clear consent from employees for data processing, keep this on record and make sure you communicate the process of data collection and employees’ rights.
- Only collect and store data necessary for payroll processing.
- Implement strict access controls to limit data exposure and use password protection where necessary.
- Maintain comprehensive records of all data processing activities.
If you are outsourcing payroll to a third-party supplier like Bishop Oak, ensure that all processes are in place to make sure they adhere to the correct processes. You can certify that the correct processes are being followed by selecting a Professional Passport-accredited payroll provider like us.
Develop a data breach response plan
Create a strong data breach response plan in the unlikely event of a data breach so you are prepared and can act quickly. The plan should include procedures for reporting data breaches to affected parties and relevant authorities, a process for evaluating and analysing the data breach and ways to mitigate the breach.
What are the consequences of not complying with GDPR regulations?
Not complying with GDPR regulations can lead to substantial fines and penalties as well as damage to your business’s reputation. By choosing to outsource your payroll, you will have complete peace of mind that your payroll process is GDPR compliant and that all legal liabilities are handled correctly.
To find out more about our outsourced payroll services, please contact our team.
