Bank says it will offer software to employees who don’t have it

By KATHARINE B. FROST The Globe and Mail article Businesses can no longer rely on their HR systems for their employees’ payroll data, a new federal advisory says.

That is because of an impending rollback in the government’s IT policies.

The Federal Business Opportunities Administration, which is in charge of training employers, said in its latest report that IT departments should stop using CRM and LUCID software for payroll and other information systems.

“Employees should no longer be required to use CRM or LUCIDs for payroll data management,” said the advisory.

The FBOA report says that companies will now be able to use their own systems to manage payroll, but that the new systems won’t offer the same level of security as those used by HR departments.

It says companies should instead use the LUCIDS system that the Government Accountability Office and other government agencies have developed to provide more robust data security and control.

“Companies should continue to rely on systems that meet their specific requirements and expectations,” said FBOAs chief information officer, David A. Ries, in a statement.

“With the rollback of the IT reform law, it is imperative that businesses use new technology to meet the needs of their employees and the needs and privacy of the taxpayer.”

CRM software and the LOVID systems have been used in the past to help employers maintain the confidentiality of employees’ data.

But the federal government has made it mandatory for federal employers to have their payroll systems compliant with HIPAA, the federal law that governs personal health information.

That law requires employers to keep personal health data confidential.

It also prohibits the sharing of sensitive employee information with third parties, such as banks and credit unions, without their consent.

The government says that in the new law, employers are required to make payroll data more secure by providing a more robust protection to employees, including more access to their passwords and more security measures to protect against identity theft.

“Achieving that security is an important first step in helping employers meet their obligations under HIPAA,” said Chris L. Gagnon, executive vice president of the FBO, in an e-mail.

“We’re also encouraged that employers are using LOVIDs for other purposes, including for compliance purposes.”

The report also warns that employers can now expect more challenges to keeping employees informed about their employer’s payroll.

“The government’s recent changes to the CRM Act will require employers to provide employers with information on the number of employees who have access to the payroll systems and to provide that information to the HR department.

While the government expects employers to use this information to provide timely information about employees’ wages and employment status, employers will need to work to ensure that employers provide employees with accurate and timely information,” it said.

The report says employers should also be careful not to share employees’ personal information with any third party.

“For example, employers should not share the payroll data with third party payees that may have access or use the data in an unauthorized manner,” it says.

The Government Accountability Institute, a government think tank, also says that employers should be aware that if employees don’t pay their taxes electronically, they should be prepared to use a payroll provider that offers a payment option that doesn’t require them to enter their Social Security numbers or pay information.

“While we understand the importance of paying taxes electronically and are supportive of employers and their efforts to pay employees electronically, it would be beneficial to consider the financial implications of this,” said Dan C. Smith, an executive vice-president at the institute.

“If employers do not offer this option, then they are potentially placing financial and privacy obligations on their employees that may be too great for many employers.”

The Federal Financial Institutions Examination Council, an industry body that advises on financial matters, also has an online guide for employers.

“All payroll applications should have a payment method that does not require the employee to enter any personal information,” said Eileen N. Kohn, FFIEC’s director of enforcement.

“This includes payroll forms for individuals, payroll applications for businesses, and the payroll applications of other companies.”

A number of states and cities have begun passing legislation to require employers who have payroll systems to get a license, which will cost about $15,000 to $20,000.

In most cases, employers can get a financial institution license for free, though some businesses will charge a fee to do so.

“Many states and municipalities have enacted regulations or ordinances that make it easier for employers to obtain a license for payroll services, such to the extent that they are required by law,” said Michael R. D’Antonio, a spokesman for the Federal Trade Commission, which has opposed similar efforts in the U.S. The new law also requires that employers get approval from their customers before using any information in the system, including Social Security Numbers, tax information and other sensitive personal

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