Legal
Data Processing & Security
Last updated: 1 July 2026
Payroll means handling some of the most sensitive personal data a business holds: names, addresses, National Insurance numbers, pay and bank details. Protecting that data is central to what we do. This statement explains how we handle it. It complements our privacy policy.
Our role: your data processor
When we run payroll for you, you remain the data controller for your employees' data, and Effective Payroll Solutions Ltd acts as your data processor. We process employee data only on your documented instructions and only to deliver the payroll service you have engaged us for. This arrangement is governed by the data-processing terms in our engagement with you, as required by UK GDPR.
What we do with the data
We use the employee data you provide solely to calculate and process pay, make statutory deductions, file Real Time Information with HMRC, administer auto-enrolment pensions, and produce payslips and reports. We do not use it for any other purpose, and we do not sell it.
Who we share it with
We share data only where it is necessary to deliver the service, for example with HMRC and your pension provider. Where we use sub-processors, such as recognised payroll software, we ensure appropriate data-protection terms are in place.
How we keep it secure
- We are registered with the Information Commissioner's Office (ICO).
- We use recognised payroll software and secure systems.
- Access to payroll data is limited to the staff who need it to do their job.
- Payslips and reports are delivered securely.
- As CIPP members with Cyber Essentials certification, our processes meet strict security standards.
- We keep records only for as long as the law and good practice require.
Your employees' rights
Your employees have rights over their personal data under UK GDPR. As the data controller, you handle those requests, and we support you in responding to them promptly and correctly.
Talk to us
Data security is one of the main reasons businesses hand payroll to an accredited bureau rather than doing it on a spreadsheet. If you would like to know more about how we protect your data, call us on 01443 402116 or get in touch.