The General Data Protection Regulation (GDPR) and Payroll Compliance
The General Data Protection Regulation (GDPR) will come into effect May 25th 2018 replacing the current data protection framework under the EU Data Protection Directive. New rules will come into force that will have significant implications on businesses and payroll personnel. Some key changes, that have been well documented, include a territorial extension of jurisdiction, penalty alterations and consent conditions.
But what impact will this overhaul have specifically on payroll personnel? And how can businesses prepare for the radical changes? Find out below.
10 key new requirements for payroll personnel:
- Be aware of the significant increases in obligations and accountability
- Ensure that your business has/designates a Data Protection Officer – this person must have appropriate expertise therefore training or outsourcing may be required
- Develop/help maintain the required documentation but from a payroll data perspective
- Assist in minimising the data that you collect/store
- Implement and/or record “Data Protection Impact Assessments” (DPIAs)
- Develop/assist in the development of defined instructions and limitations for the various layers of data/payroll processors
- Be aware that there will be increased liability for breaches when working outside of agreed remits
- Know the implication of breaches – for example, the changes in penalties will mean that businesses in breach of GDPR can be fined up to 4% of annual global turnover or €20,000,000 (whichever is greater)
- Know what you need to do in the event of a breach. In most cases, if there are data breaches you may need to notify the appropriate parties (e.g. staff, the Data Protection Commissioner) “without undue delay” and if possible within 72 hrs of becoming aware of the breach
- Develop/assist in the development of, or at a minimum make yourself aware of, new business policies and procedures – these should be put in place to ensure compliance and to ensure that staff acts appropriately in accordance with the updated legislation
How to prepare?
The Data Protection Commissioner is responsible for upholding the rights of individuals as set out in the Acts, and enforcing the obligations upon data controllers. They developed a useful guide that can help you and your organisation prepare for the GDPR , see image below for their overview:
Responsibility and further assistance | Paycheck Plus Payroll Compliance
Payroll and HR managers/employees have a responsibility to ensure that their business is compliant with the ever-changing payroll legislation and that their employee and business data is secure and confidential. Along with their other internal obligations, payroll managers must prepare for the significant industry changes that are approaching. This may prove to be challenging, especially if there is uncertainty around current compliance due to the recent industry developments. We understand the difficulties that companies and their employees face when payroll is not at the core of their business, and we're here to help.
Here at Paycheck Plus we specialise in payroll and provide payroll solutions tailored to the specific and unique needs that each business has. We provide managed payroll, auditing, consultancy, payroll workshops and reporting along with many other services that ensure payroll compliance. We also provide a cover service for payroll staff which gives companies (and payroll staff) peace of mind that their employees will still get paid even if their payroll team becomes ill or goes on leave.
To ensure payroll compliance and for expert support contact Paycheck Plus now.
Paycheck Plus – Payroll Excellence