E-business and enterprise software developer Solit has developed and tested an electronic IRP 5 and payslip distribution technology, which is lower-cost, faster and more secure than the legally enforced paper-based solutions currently in use.
"The current legal situation is that IRP 5 slips and payslips must be provided to each employee in physical, printed format," says Alan Burger, director at Solit. This is done to prevent fraud and stop payslips landing up in the wrong hands, which can lead to misrepresentations when applying for credit and document falsification.
"It is our practical experience that paper-based payslips are more dangerous and open to abuse than electronic copies," says Burger. "How often do employees find their payslips on their desks? How often, when the administration person comes round to deliver the payslips, are employees out?" asks Burger.
"There are significant gaps in security between when the paper-based payslip is printed, and when it is finally delivered to its intended recipient. A payslip can pass through several hands - including outside couriers - before it gets to the designated person."
All along this route, the potential for abuse exists - yet this is the legally stipulated environment in which South African companies are obliged to operate. This is not to mention the costs involved in this administration.
Solit considered all these issues and decided there had to be a better, safer and more cost-effective way of achieving the same end as the law desired. Its solution is the electronic preparation, distribution and storage of all records of financial transactions between employees and their companies in a way designed to minimise cost and maximise security. To solve the issue of edited or changed payslips being used either by employees or unscrupulous third-parties into whose hands they may have fallen, Solit's solution ensures that once a payslip has been generated, even if it is altered later on, it can always be compared against the original.
"We insert an encrypted image, not visible to the human eye, and digitally watermark the payslip," says Burger. This watermark has been generated in such a way that it can be extracted from any copy of the physical - be it a fax, e-mail, or photocopy - through Solit's technology.
"Once the identifier has been extracted, the document is then compared to the original and verified," says Burger. In addition to the hidden digital watermark, the payslip will also contain a unique but visible number, against which telephonic double-checks can be made.
Distributing payslips electronically is more secure than having them delivered. "The payslip e-mail is encrypted, compressed, digitally signed and given a password. This ensures that only the intended recipient will be able to open the e-mail, with their own password," Burger says.
This works well for employees who share computers, for example, and prevents them from accessing one other's payslips. Finally, the system has an automatic receipt and read audit log which provides full details of to whom, when, where and how the payslip was accessed.
"The electronic storage of these documents in our Web-based document management product, Tilos Documents, means the indexing and retrieval of these slips takes seconds," says Burger. This is a great aid when payslips have been lost and the HR department is requested to provide copies. Because the electronic format is inherently safer than the paper route, Solit will be pursuing the matter through submission to the legislative process and will try to influence the lawmakers to allow for electronic payslip administration.
"It makes business sense," says Burger. "Electronically issued payslips are not only more secure, but reduce procurement, production and distribution costs," he concludes.
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