The Confidentiality of Payroll Information
The payroll department oversees confidential information on a daily basis. Some of the information that the payroll department receives contains employees’ Social Security numbers, bank account numbers, emergency contacts, address information, and other highly confidential information. It is vital that anyone working in payroll or sending information to the payroll department takes precautions to ensure that confidential information remains that way.
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Considerations
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Prior to releasing any confidential payroll information, the payroll department needs to know what information is acceptable to disclose on behalf of the employee. If you are on the receiving end of the confidential information, you should always make sure that you do not leave information lying around on your desk; remember to keep papers and documents in a secure spot out of the way of prying eyes. Ideally, a locked drawer of filing cabinet is the best place to store such information.
Types
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The payroll department receives and distributes different confidential employee information. Some of the information includes employee addresses and emergency contact information, pay rate information, direct deposit information, child support orders, garnishments, and wage verification information. The payroll department might also receive information requests from employees, such as copies of check stubs and requests asking for duplicate W2s. Prior to releasing the information, it is important to check the validity of the person requesting the information as everyone who asks may not be necessarily entitled to receive this information.
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Entitlement
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Not everyone who requests confidential information from the payroll department is entitled to receive the information. For instance, the spouse of an employee is not privy to any information regarding the employee, including hours worked, location worked, or pay information. Typically, in order to release information, you must have the consent of the employee prior to doing so. However, if the request is from a government agency, then the consent of the employee does not come into play. Another requirement is that any information released come in written form. Someone cannot call on the phone and ask for confidential information. Inquiries must be received on professional letterhead as payroll personnel do not release information to individuals; they must represent a company or an organization.
Methods
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Information requests will come in different forms: by fax; by email; or by mail. It is important to have a system set up to insure that you are providing information on the correct person. In any given company, you will run across numerous employees with the same name. Typically, the name and Social Security number are required in order to supply the requesting party with information. If you are receiving information on an employee, then this information should also be part of the process.
Requests
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Depending on the type of request, the request form may also be delivered to another department. For instance, the human resource department may handle verification of employment requests while garnishment and child support orders may go directly to the payroll department. The structure of handling confidential payroll information will vary by company based on what the company deems the appropriate channel to disseminate the information.
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References
Resources
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