Businesses operating in the payroll services industry are tasked with handling and processing large amounts of client financial data. Along with this comes many potential risks associated with mishandling this critically important data. Luckily, it is possible to prove to your clients that their data is handled properly by completing a Payroll Services SOC Audit.
Which SOC Type Is Right For Payroll Service Providers?
There are two major categories that most SOC Audits fall into: a SOC 1 Audit and a SOC 2 Audit. Both are in-depth looks at the internal control environment of an organization, but they are different in which parts of the environment that they examine.
A SOC 1 Audit focuses on the security environment and internal controls of an organization that relate to consumer or client financial information. A SOC 2 audit focuses on a broader scope and what is known as the 5 trust service principles: security, availability, process integrity, confidentiality, and privacy.
A SOC 1 Audit is the most common for a Payroll Services SOC Audit due to the large amount of client financial information that they handle in the industry.
Benefits Of Completing A Payroll Services SOC Audit
Many companies are being asked to complete SOC Audits by their existing clients, but even if your business is not being requested to complete one for a specific purpose there are many great benefits for becoming SOC compliant including:
- Showing current clients their data is not at risk
- Discovering any potential security risks that may exist
- Receive advice on how to close potential security risks
- Differentiator from the competition
Data breaches and ransomware attacks have become far more common in recent years, and becoming SOC compliant is the best way to mitigate any potential risks.
If you would like to get started on a Payroll Services SOC Audit, contact us today!
