In this more restrictive age of corporate governance brought on by the Sarbanes-Oxley Act of 2002 and the corporate failures and scandals that preceded its conception, there exists a growing problem that has preoccupied the minds of corporate managers; the importance of protecting and storing sensitive employee and payroll data in a system that protects against the dangers of compromised security, minimizes cost, and adheres to legal requirements of the United States Federal Government as well as individual states. Improper data management of sensitive data such as employee files, time records, and payroll information has the potential to cost corporations and institutions millions each year in auditing expenses, security concerns, tax violations and legal disputes with employees.
“Organizations should identify what information they use on a daily basis, says Stephen Kolbe, president of Analysys, “as well as what information—if lost—could lead to bankruptcy, legal action, and possibly even the organization’s end of existence”.
While the losses associated with improper employee records are steep, they are also simply avoidable through the data storage capabilities of time and attendance software. The software was originally designed for accurate employee time entry and time accounting but serves the dual purpose of storing all relevant data within the system’s database.
The white paper will discuss in greater detail what the cost associated with audits, corporate hackers, tax issues, payroll disputes, and employee lawsuits can be. We will then explore how time management software can resolve the problem, and what the next steps to implementing this technology are.