E-business and enterprise software developer Tilos has developed and tested an electronic payslip distribution technology, which is lower cost, faster and more secure than the once legally enforced paper-based solutions currently in use.
"The legal situation used to be that payslips had to be provided to each employee in a physical, printed format," says Sybille McCloghrie, director at Tilos.
This was 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 McCloghrie. "How often do employees find their payslips on their desks? How often, when the administration person comes round to deliver the payslips, are employees not at their desks?" asks McCloghrie.
"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 used to be the legally stipulated environment in which South African companies are obliged to operate. This is not to mention the costs involved in this administration.
Tilos 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 payslips 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, Tilos`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.
"Payslips can be digitally signed, so that any tampering during transmission or after receipt will invalidate the document," says McCloghrie. This, along with a number of guidelines stipulated by SARS and the ECT Act, make an electronic payslip as valid as any paper printed version.
These are:
* Documents must be digitally signed.
* Documents must be encrypted with 128-bit or higher encryption.
* Electronic documents must state that it is an "original" and all paper printed copies must carry the word "copy".
* Documents must be archived and retained in accordance with the Access to Information Act.
"As an added security measure, all payslips are archived in a document store which allows a comparison of any copy to the original. In addition to the hidden digital watermark, the payslip also contains a unique, 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, digitally signed and can optionally be given a password. This ensures that only the intended recipient will be able to open the e-mail, with their own password," McCloghrie says.
This works well for employees who share computers, for example, and prevents them from accessing each other`s payslips. Finally, the system has an automatic receipt and read audit log which provides full details of to whom it was delivered, and when and where 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 McCloghrie. "This is a great aid when payslips have been lost and the HR department is requested to provide copies or provide a verification service."
The method of e-mailing payslips also lends the medium to providing a lot more information, both textual and graphical, in the payslip than just traditional payslip information. Extra information such as address details and personal details, among others, can be included for employees to verify this information. These extra snippets of information can be used to keep the employee records up to date.
In the future, companies might also provide an analysis of the payslip to verify that certain figures, such as tax and pension, are correctly calculated. This could be used to certify the payslip as correct. "It makes business sense," says McCloghrie. "Electronically issued payslips are not only more secure, but they reduce procurement, production and distribution costs as well as being a great internal brand-building medium," she concludes.
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