04:05 Issue 6

04:05

ISSUE 6

“Payroll providers are custodians of highly sensitive data. Our best practice guidance ensures that providers not only comply with local regulations but also adopt proactive data management strategies that prioritise security and responsible

payroll processing, tax compliance and reporting obligations. Holding on to unnecessary or redundant information increases storage costs and introduces potential vulnerabilities, especially in the event of a cyber attack. Best practices for minimising payroll data: Collect what is necessary: only gather data required for compliance, payroll processing and reporting. Avoid storing extra information that doesn’t serve a direct purpose. Review and reduce regularly: conduct regular audits of stored payroll data to identify information that can be archived or deleted. Regular reviews minimise the risk of data breaches by reducing the volume of sensitive information stored. Retention: How Long Should Payroll Data Be Kept? Local legislation often defines retention periods for payroll data, ranging from a few years for tax purposes to indefinite for specific corporate records. Payroll providers must navigate these differing retention rules while considering their business needs for data access and retrieval. With payroll and employee record- keeping requirements varying significantly across different jurisdictions, it’s difficult for payroll providers to take a one-size-fits- all approach to how they support customers and assist with retaining or deleting their data.

retention.” Simone Dixon, Vice President DSPANZ

Payroll providers are custodians of highly sensitive data. Our best practice guidance ensures that providers not only comply with local regulations but also adopt proactive data management strategies that prioritise security and responsible retention. . Data Minimisation: The Essentials Data minimisation is collecting and retaining only the data you need for a specific purpose. Regulations such as the General Data Protection Regulation (GDPR) in Europe and other emerging data privacy laws across the globe embed data minimisation principles. For payroll providers, data minimisation means collecting only the data required to assist customers with

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