Written by Richard Nuttall
Published on January 27, 2014

With more demands being placed upon companies in respect to their payroll, it is not surprising that there seems to be an increasing trend in payroll outsourcing. Whether this is to your accountants or a specialist payroll outsourcing company, all employers primarily retain the responsibility for ensuring compliance with the Data Protection Act 1998 (DPA). With financial penalties currently capped at £500,000 per breach, this is something which needs to be treated with the utmost of importance.

The Data Protection Act places the following key responsibilities upon employers and payroll:

  1. Ensuring the ongoing accuracy of employees personal data, including name, age, contact details and information regarding pay and benefits.
  2. Protection of this data, irrespective of whether this is being stored electronically or manually, and the appropriate use of passwords and encryption tools.
  3. Ensuring all the employees with access to the information are aware of their responsibilities to protect the data in and out of the office.
  4. Checking that your IT security policies extend to include covering the requirements of the Data Protection Act.
  5. Ensuring that any data transmitted to third-parties (including those who provide benefits to employees) is necessary.

A specialist payroll provider like Dataplan are able to take the stress out of ensuring that as a company you are adhering to these requirements.