Is Your Payroll Data Properly Backed Up?

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In this age of frequent operating system vulnerabilities, data theft and hard drive failures it is absolutely crucial that your company follows an efficient payroll data backup process so you can carry on with business as usual if disaster were to strike. Many companies assume they are backing up their data properly, but this could not be further from the truth and there are an alarming number of companies that are not backing up their payroll data at all, leaving one point of failure. In this article we are going to outline the main ways of backing up your payroll data and the pros and cons of each method.

1) Backing Up Payroll Data To An External Hard Drive

The benefits of this payroll data backup method are that it is very cost effective as external hard drives (even those of several terabytes) can be obtained cheaply. Further, this backup method is very simple as operating an external hard drive and backing up to an external hard drive are both takes that require little to no technical knowledge.

However, this method does come with some distinct disadvantages. Firstly, the external hard drive can be easily stolen or lost which means your precious payroll information will be gone with it. Secondly, the external hard drive, much like a desktop computer or laptop internal hard drive is susceptible to crashing/being corrupted which can be caused by internal mechanical failure or by software issues causing the hardware to malfunction.

2) Backing Up Payroll Data To An External In- house Server

The benefits of this method for payroll data backup include the fact that the server is often a lot more robust and dependable than an external hard drive as it often has superior internal hardware. Further, an in house server is a lot more difficult to steal or lose.

The downsides of this backup method for your payroll data is that servers are a lot more expensive than external hard drives, however, you can use the server to store many other types of data in addition to your payroll data which makes the in house server a more viable investment. The other negative is that the server, much like the external hard drive, is susceptible to crashing/being corrupted, however, the probability of this is much lower than if using an external hard drive. So overall, a server carries much the same risks as an external hard drive but these risks are much less common with the in-house server compared to the external hard drive.

3) Backing Up Payroll Data To An Online Data Backup Service

This is becoming an increasingly popular method of storing payroll data among both small and large companies, this is for several reasons. Firstly, backing up data to an online data backup service is very cost effective and you usually only have to pay a small monthly fee as opposed to the large upfront investment that an in house server would require. Secondly, using an online data backup service lessens the probability of data being lost due to hard drive corruption/error/crashing as most online backup services use the most reliable and robust hard drive which they operate in specially controlled environments that are monitored constantly and optimised by experienced engineers. Further, the online data backup service usually backs up data across a number of servers to minimise risks of data loss of any kind.

There are some downsides of using this method of  payroll data backup. Firstly, when a business is using an online backup service then that business is no longer in complete control of their data. Secondly, there is a chance, however small, that the online data backup service is hacked or compromised in some way resulting in the business’s payroll data being lost or stolen, or both. Thirdly, the business is at the mercy of any changes the online backup company make with regards to the manner in which they store data.

4) Backing Up Payroll Data By Outsourcing To A Trusted Payroll Agency

This final method is gaining a lot of traction and for good reason. With this method your sensitive payroll data is stored by a company on their servers and you only pay a small monthly fee to them. But, unlike most standard online backup service companies, with a payroll agency your data will be handled with the extreme care that it deserves by experienced payroll professionals that have an intimate understanding of the UK payroll industry. And you will get all this for an affordable monthly fee.

That is just the tip of the iceberg however, an experienced payroll agency like CPS Payroll Solutions can do a lot more than just securely and affordably store and maintain your payroll data. They can actually have their experienced payroll staff carry out your payroll duties, freeing your company up to do other things.

Outsourcing your payroll data backup to CPS Payroll Solutions not only gives you an affordable and incredibly robust and effective way of storing your sensitive payroll data but provides you with a means of having your payroll duties carried out by payroll professionals with decades of combined experience, all for an affordable monthly fee.

If this is something that interests you, then we would love to hear from you. Don’t hesitate in reaching out to us online at ( or via phone on (01442 285460).

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