In addition to issuing electronic payments to employees, it is also possible to issue electronic remittance advices and W-2 forms to them. The most com­mon approach is to post this information in PDF format in secure accounts on the Internet. There is no asset control problem with these best practices, since there is no potential loss of assets. However, there is a risk of employee pay information becoming available to anyone who gains access to the on­line accounts. The next control is necessary to mitigate this risk.

• Require user ID and password access to remittance and W-2 accounts. Anyone accessing electronic remittance or W-2 information over the Internet must be required to set up user identification and password in­formation to access the accounts. To lock down access to this informa­tion even more tightly, it may be necessary to require periodic password changes.

[tags]payroll remittance[/tags]

Tags: payroll remittance