Privacy laws and common sense dictate that you take action to protect information about your employees and independent contractors. As the deadline approaches for providing W-2s or 1099s to workers, it’s important to safeguard keep security of their Social Security numbers and other sensitive information.
eFile4Biz, an IRS-authorized e-file provider for online processing of 1099s and W-2s, shares these guidelines:
- Keep only the information you need. Eliminate or archive older data.
- Set routine procedures for tasks, such as when/how to dispose of tools that contain house sensitive info.
- Protect paper documents from a security breach or identity theft. Lock cabinets in which papers are kept.
- Keep an inventory of your information sources. Make sure as a small business owner you know where your important data is at all times.
- Review your network setup. Protect your business with a strong firewall and strong security programs.
- Provide access to information only on a “need to know” basis. Protected information includes not only employee/contractor data, but also your passcodes.