Cybercrime and Benefits Plans
May 24, 2022
According to recent estimates from the University of Maryland, there is a cyberattack every 39 seconds. Data breaches and cyberattacks are daily headlines—and employee benefits plans are no exception to that threat.
In fact, employee benefits plans are even more vulnerable as the coronavirus pandemic continues. Organizations and benefits providers are relying heavily on electronic access, ultimately creating new vulnerabilities.
The Risks
Virtually any type of employee benefits plan is vulnerable to hackers. The plans can be exposed to risks relating to privacy, security and fraud.
Retirement, savings and health plans are attractive targets for cybercriminals seeking access to plan assets and the personal information of participants and beneficiaries. Sensitive information is valuable information when it comes to cyberattacks.
Benefits plans are at risk as a result of the following factors:
- Personally identifiable information such as Social Security numbers, birthdates and email addresses have significant value to hackers. That information can be misused over a long period of time since it is permanently associated with an individual.
- Financial information, including enrollment data, account balances, direct deposit information and compensation are highly attractive. Hackers could target those online accounts to request loans, distributions and withdrawals.
- Lastly, there are multiple attack points for hackers since benefit plans are connected to several outside service providers, such as those that offer retirement plans, health insurance, vision insurance, dental insurance, short-term or long-term disability insurance, and flexible spending accounts.
Some examples of cyberthreats include phishing, malware and ransomware attacks. Lost or stolen mobile devices, laptops and flash drives that hold personal information are additional tangible threats to benefits plans.
The Consequences
Cyberattacks on benefits plans can have substantial consequences for all parties involved. Consider the following:
- Significant costs may be incurred in detecting the extent of the breach, investigating and managing the incident response, recovering compromised data and restoring overall system integrity.
- The theft of personally identifiable information and other plan assets may result in monetary losses to participants, beneficiaries, the plan, the plan sponsor and service providers.
- Organizations may experience operational disruption and reputation damage as a result of a security breach. Additional costs will be incurred to respond to and resolve either of those issues.
- Breaches of health plans may result in potential violations of the federal law that restricts release of medical information, exposing the plan sponsor and service providers to fines.
Mitigating Risks
As many employees and providers may be working from home, it’s especially important to understand cyberthreats and how to proactively protect sensitive organization and employee information. To mitigate cyber risks, consider the following measures:
- Properly monitor technology. To better protect and control data, it’s important to maintain up-to-date technology across the organization. Identify current vulnerabilities by conducting a gap analysis, penetration testing or other assessments.
- Educate employees. Start with properly training employees, especially those who are working remotely, on how to handle personnel data. This could be as simple as compiling and sharing cybersecurity tips. Think about physically protecting electronic devices and information (e.g., locking laptops and hiding information on camera) in addition to secure document storage and destruction. Pay special attention to common risks like passwords, attachments and Wi-Fi networks. Employees should always be vigilant, but may have their guards down while working from home.
- Educate participants. Similar to the points above, it’s important to educate participants about cybersecurity and different kinds of potential threats. It’s a good idea to thoroughly explore and ask questions about service providers’ security policies.
To shift cyber risks, consider the following measures:
- Review contracts. Legacy contracts don’t consider modern-day cyber risks. It’s important to review contractual arrangements to ensure vendors provide an appropriate level of protection against cyber risks.
- Obtain comprehensive insurance policies. Cyber liability insurance covers financial losses that result from data breaches and other cyber incidents. Most policies include both first-party and third-party liability coverages. It’s important to review and understand business insurance policies to understand whether additional coverage is needed.
With many employees working remotely as a result of the pandemic, plan sponsors should consider updating work-from-home policies to include cybersecurity clauses.
Other Considerations
Open enrollment season is a good time to carefully review organization and vendor security technology and policies, along with any contracts, insurance or other coverage. All parties involved should have adequate data protection strategies in place.
Always be prepared for the worst to happen. In the unfortunate event of a security breach, it’s important to be prepared with a basic communication and action plan. Even better, incorporate security breaches in an organization’s comprehensive reputation management plan. Keep in mind all internal and external audiences, and appropriate actions to protect information and restore overall system integrity. If not handled quickly and appropriately, reputational damage could be an additional threat to all parties involved in employee benefits plans.
Click here to download a pdf of the Top Tips to Avoid Cyberattacks.
To learn more about mitigating cyber risks in today’s digital world, contact SimcoHR today.
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It’s April 15—Tax Day in the U.S.—and if you’re a business owner or HR professional, chances are W-2s, filings, and compliance have been front and center for weeks (if not months). But here’s the thing: tax season doesn’t have to be stressful. The right payroll and HCM technology can turn what’s traditionally a time-consuming, error-prone scramble into a streamlined, accurate, and surprisingly painless process. From automatically balancing year-to-date totals to generating and distributing W-2s on time, a robust payroll system ensures nothing slips through the cracks. No more cross-checking data across platforms, no more last-minute tax filings, and no more anxiety about penalties or missed deadlines. At Simco, we get it—because we help businesses simplify this process every single day. The Challenges of Traditional Payroll Tax Management If you're still managing payroll taxes manually—or using disconnected software systems—it’s all too easy to fall behind. Some common issues employers face include: Human error : Tax calculations, forms, and deadlines are complex. A small mistake can lead to penalties or costly overpayments. Time-consuming manual work : Without automation, payroll processing can involve endless imports, exports, and reconciling data across multiple platforms. Compliance risk : With ever-changing tax laws at the federal, state, and local levels, staying compliant can become overwhelming without the right tools. How the Right Technology Can Make Tax Season a Breeze Today’s modern payroll and HCM systems are designed to simplify these challenges. Here’s how the right technology can help: 1. Automated Tax Filing and Payments: An integrated payroll system automates tax calculations, deductions, and filings. Forms like W-2s and W-3s are automatically generated, filed, and paid—without manual input. This reduces the risk of late filings, penalties, and missed deadlines, ensuring compliance with the IRS and state tax agencies. 2. Streamlined W-2 Management: W-2s can be a headache to manage—especially if you have complex tax scenarios like multi-state employment. With an automated system, W-2s are generated and distributed electronically, ensuring accuracy even in complex situations. Employees receive the correct form without you having to spend valuable time cross-checking or manually making corrections. 3. Self-Balancing Capabilities: A self-balancing payroll system ensures that your year-to-date totals and tax filings are accurate, eliminating the need for extensive manual reconciliation. By automatically matching figures in real-time, it streamlines year-end reporting, providing peace of mind when the filing deadline approaches. 4. Fewer Third-Party Imports and Exports: With everything integrated into a single platform, you won’t need to rely on third-party software or services for tax filing and reporting. This means fewer opportunities for errors, fewer manual imports and exports, and significant time saved during payroll processing. 5. Automated Adjustments and Updates: Tax laws and rates change frequently. With the right payroll system, you won’t have to worry about manually updating deductions or tax rates. The system automatically applies changes—whether it’s an update to federal tax rates or state-specific deductions—so your payroll is always up to date. 6. Expert Support When You Need It: Even with the best technology, tax season can present complex challenges. That’s why it’s important to have access to expert support. Whether you need help with multi-jurisdiction filings, audit preparation, or just have questions about tax return procedures, our team of HCM Specialists at Simco is here to provide guidance and ensure that you’re compliant every step of the way. Why Choose Simco for Smarter Payroll and Tax Management? As an isolved Network Partner, we offer a fully integrated payroll and tax management system that is built to handle the complexities of tax season—and beyond. We provide businesses with the tools they need to automate tax filings, ensure compliance, and streamline payroll processing. Here's how we do it: All-in-One Payroll & Tax Platform : From payroll processing to tax deposits and W-2 filings, everything happens within one system, reducing manual work and the risk of errors. Automatic Filing & Timely Accuracy : Federal, state, and local tax filings are completed automatically and on time, ensuring your employees receive only one accurate W-2 form—even in multi-state tax scenarios. Error-Free Tax Reporting : Our self-balancing ledger helps reduce errors and simplifies reconciliation, making tax reporting easier and faster. Expert Support : Whether it’s navigating multi-jurisdictional filings, preparing for an audit, or handling amendments, our team is always available to offer expert advice and assistance. Cost-Effective Solutions : We offer top-tier tech at competitive pricing, often matching or beating our competitors (learn about the Simco Price Match Commitment here !), while providing the personalized service that large providers can’t. Let’s Make Next Tax Season Easier, Starting Today It’s never too early to think about next year. With our unified payroll/HCM solution at Simco, you can save time, reduce stress, and ensure compliance all year long. It’s time to upgrade your payroll system to one that works smarter, not harder. Let’s chat and explore how we can help streamline your payroll and tax processes, so you can focus on growing your business with confidence.
New month, fresh start! But let’s be real—how many times have you set a goal, only to watch it fizzle out? Maybe it was too vague, too ambitious, or just got buried under the daily chaos. If you’re tired of spinning your wheels, it’s time to take a smarter approach—literally. Enter SMART goals —your secret weapon for turning ideas into reality. Whether you’re looking to improve employee retention, streamline operations, or boost revenue, this framework ensures your goals don’t just sound good but actually get done . The SMART Formula for Success Specific – Get laser-focused. A goal like “improve employee morale” is too broad. Instead, ask yourself: What does success look like? Are you reducing turnover? Increasing engagement scores? Define it. Measurable – Numbers don’t lie. How will you know if you’ve succeeded? Instead of saying, “increase engagement,” set a target: “Boost employee engagement scores by 5%.” Tracking progress keeps you accountable. Achievable – Dream big, but stay realistic. Sure, we’d all love zero employee turnover, but is it feasible? Probably not. However, reducing turnover by 15%? Now that’s a goal within reach. Relevant – Align with the bigger picture. Every goal should move your business forward. If your focus is employee retention, then prioritizing revenue growth over culture initiatives might not be the best move. Keep your goals aligned. Time-Bound – Set the clock. “Improve retention” is a nice thought, but without a deadline, it’s just wishful thinking. Instead, say, “Increase retention by 5% by the end of the year.” A firm timeline drives action. Track It or Lose It A goal without tracking is just a wish. You wouldn’t set out on a road trip without checking the map, so why leave your goals to chance? Regular progress check-ins—whether through weekly reports, monthly reviews, or real-time dashboards—help keep you on course. Tracking not only highlights wins but also flags roadblocks early, giving you the chance to pivot before it’s too late. And here’s the key: don’t just track for the sake of tracking—use the data to refine your approach. For example, imagine you're aiming to improve employee engagement scores by 5% by the end of the year. After tracking progress for a few months, you notice that engagement is lagging in one department. Instead of waiting until the year-end review, you dig deeper. Perhaps it’s due to lack of recognition or unclear communication—adjustments are made, and suddenly, the department starts seeing improvement. Tracking allows you to course-correct in real-time, ensuring that you hit your target rather than missing the mark. The most successful businesses aren’t the ones that never face setbacks—they’re the ones that track, adapt, and push forward. How We Use SMART Goals to Stay Ahead At Simco, we don’t just talk about SMART goals—we live by them. Our team follows the Entrepreneurial Operating System (EOS) , which helps us stay focused, aligned, and results-driven. A big part of EOS is setting Rocks —key priorities for the next 90 days. And guess what? Every Rock follows the SMART framework: Clearly defined objectives Measurable success markers Challenging yet attainable goals Aligned with our company vision Locked in with a firm 90-day deadline This system keeps us accountable, making sure we’re always moving the needle in the right direction. Your Turn: Take Action Today No more “someday” goals— today is the day to take control. Whether you’re aiming to increase revenue, refine your processes, or boost employee satisfaction, the SMART approach ensures you’re not just busy—you’re making real progress. Need help aligning your HR, payroll, or benefits strategy with your business goals? Simco is here to help . Let’s make this your most productive quarter yet!
April Fools' Day is often the perfect opportunity for some lighthearted fun at the office. Whether it's a harmless prank, a funny email, or a playful desk setup, these moments of levity can help break up the monotony of the workday and bring smiles to your team. However, as many HR professionals know, it’s essential to strike a balance between fun and professionalism. While the intention behind pranks is typically harmless, they can sometimes cross boundaries and lead to uncomfortable situations, or worse, legal risks. Recently, an example came to light where one employee thought it would be funny to place a suggestive image on a coworker's desk. The issue arose when another employee saw the image and was offended, leading to a formal complaint. This scenario highlights the importance of knowing where to draw the line between lighthearted fun and inappropriate behavior. A Fine Line: When Fun Turns into Harassment Even if a prank isn't directly targeted at the offended person, it can still create a hostile work environment, especially if it makes someone uncomfortable. As an employer, it's crucial to ensure that your workplace remains respectful and free from harassment. If a prank results in a complaint, it's essential to follow your company's policies to investigate and address the situation. Proper documentation of your investigation and the actions taken is vital to demonstrate that you've fulfilled your obligations as an employer and to protect the organization in case of any future disputes. Setting Clear Expectations To avoid similar issues in the future, it's a good idea to review and clarify your company's stance on pranks and personal conduct in the workplace. Setting expectations starts with having a clear written policy that outlines what is and isn’t acceptable behavior, especially regarding pranks. Consider creating a set of guidelines that all employees can refer to, and be sure these expectations are communicated effectively to everyone. Here are a few tips to guide you: Establish a Formal Policy: Clearly define the boundaries of acceptable humor in your workplace. The policy should cover both pranks and jokes, specifying that while fun is encouraged, it should not come at the expense of respect, inclusion, or professionalism. Communicate Expectations Clearly: Include these guidelines in your employee handbooks or conduct policies, and ensure they’re reviewed during onboarding. Hold periodic team meetings to remind everyone about the importance of maintaining a respectful environment and reinforcing your stance on pranks. Set the Tone from Leadership: Managers and leaders should set an example when it comes to humor in the workplace. They should demonstrate the type of jokes or pranks that are acceptable and ensure their actions align with company policy. Employees are more likely to follow suit when they see their leaders taking these matters seriously. Encourage Open Communication: Foster a culture where employees feel comfortable speaking up if they feel a joke or prank crosses the line. Providing a safe outlet to discuss concerns without fear of retribution will help create an open, transparent environment where everyone feels heard. Categories of Pranks and Jokes That Cross the Line While there’s no one-size-fits-all approach, there are certain categories of pranks and jokes that should generally be off limits in the workplace . These pranks have the potential to cause harm, create discomfort, or violate company policies. By categorizing these behaviors, you can help employees better understand where to draw the line. Sexual or Gender-Based Humor : Avoid pranks with suggestive content, gestures, or language that can create a hostile work environment or be considered harassment. Discriminatory Jokes : Refrain from jokes targeting someone's race, religion, gender, sexual orientation, or other protected characteristics, as they can be harmful and illegal. Invasive Pranks : Don’t tamper with personal belongings or invade others' personal space, as this undermines comfort and respect. Work Disruptions : Pranks that interfere with productivity or damage equipment should be avoided, as they can hurt overall efficiency. Aggressive or Harmful Pranks : Any prank that causes physical harm or emotional distress, including pranks involving physical touch or intimidation, is off-limits. Creating a Culture of Respect and Fun The key to managing pranks and other fun activities is to cultivate a workplace culture where employees feel comfortable, respected, and empowered. Rather than banning all pranks, focus on fostering a professional environment where employees understand the line between harmless fun and actions that could potentially harm or offend others. Encourage employees to engage in team-building activities and moments of levity that unite them in a positive and inclusive way, without crossing into territory that could lead to complaints or workplace tensions. As April Fools' Day passes, it’s important to remember that while pranks can provide a bit of comic relief, they should never come at the expense of respect or professionalism. By setting clear boundaries, encouraging open communication, and ensuring all employees understand your policies, you can create a workplace where everyone feels comfortable—whether they're laughing at a harmless joke or focusing on their next big project. Have fun in the workplace—but always ensure that a good laugh never comes at the expense of respect or professionalism!
