Keeping Wages Confidential

KenB · April 2004

Is anyone aware of a method for keeping the wages of top executives confidential so that no one in HR or finance knows of them other than the CFO and the Board of Directors? We outsource our payroll to ADP and currently there is someone who handles the payroll that reports the salary amounts to ADP.

Has anyone ever run across this where you want to keep wage information for certain people in the hands of only essential people who have to know?

Any input would be appreciated.

KenB

Don D · April 2004

You'll have to present your problem/request to the outsourced payroll administrator. Tell them to not include these people on any charting or reporting mechanism that they provide to the company. I'm sure if you tell them you are not going to continue using their services they will find a way to make this information confidential. Another method would be to payroll these selected individuals with checks written from your desk drawn on a local payroll account.

Betty I_O · April 2004

We use ADP in some of our subsidiaries. The top executives in those groups have been set up with ADP in a separate account, so that none of their info appears on the regular reports that are generated for other employees in those subsidiaries. The reports supplied for those executives are delivered separately and go only to one designated individual. That person also handles input for that group. Access to the system is designated only for that person.

Our ADP services group has been most cooperative in setting up various controls/"firewalls." If you cannot work out a viable arrangement with your ADP people, Don's suggestion about bringing it in-house is your other option.

By the way, if someone really wanted to know what your (I believe it is five)top executives are earning, they can get that information because it is a matter of public record.

SMace · April 2004

That is only true for publicly traded companies.

marc · April 2004

[font size="1" color="#FF0000"]LAST EDITED ON 04-23-04 AT 04:16PM (CST)[/font][br][br]There are lots of mechanisms to keep these things "relatively" confidential. The best way I have experienced involves an executive payroll system that is stand alone. You still have a trusted few who know these dollars because someone has to transfer the information into a payroll reporting system, handle personnel files, take care of raises and bonuses, process W-2's and quarterly payrolls reports. Many benefit plans use payroll information to calculate costs (such as disability plans, life insurance, 401k's, etc.

From a practical standpoint, it is difficult to keep such information from intelligent accounting personnel and financial analysts because the transactions do hit the books and records and show up in all the places I mentioned above. But good luck, and think of all of the places this information goes and you will find lots of holes to plug to truly keep it confidential.

Keeping Wages Confidential

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