Does your payroll provider have the necessary certifications?

When you choose a payroll platform, you're entrusting your most sensitive data: employee names, bank details, tax information, and salary records. A breach doesn't just risk your compliance status. It can damage your reputation and your team's trust.

That's why security and financial certifications matter. Not as badges on a website, but as proof that a provider has been independently audited and meets rigorous standards for protecting data and ensuring accurate financial reporting.

What is ISO 27001:2022

ISO 27001 is an international standard for Information Security Management Systems (ISMS), set by the International Organization for Standardization and recognised globally.

Think of it as a comprehensive playbook for how an organisation should protect information. It covers 93 separate controls across categories including:

• Access control, determining who can see what.
• Encryption, scrambling data so it can't be read if intercepted.
• Incident response, defining what to do if something goes wrong.
• Supplier management, vetting third-party tools and services.
• Regular audits and testing, proving controls actually work.

The ":2022" designation means the standard was updated in 2022 with modern security challenges in mind. To achieve ISO 27001 certification, an organisation undergoes an independent audit by an accredited certification body. If they pass, they're certified and must undergo annual surveillance audits to maintain that certification.

What is SOC 1 Type II

SOC 1 (System and Organization Controls 1) is an AICPA framework specifically designed for service providers handling financial reporting. While SOC 2 focuses on security and availability, SOC 1 Type II covers financial reporting controls, the systems and processes that ensure financial data is accurate, timely, and reliable.

For a payroll provider, this is critical. Payroll data feeds directly into financial reporting. If those controls aren't robust, you risk inaccurate payroll journals, incorrect GL postings, and compliance issues with auditors.

Like SOC 2 Type II, SOC 1 Type II requires a minimum six-month audit period, proving that controls operate consistently and effectively throughout that period. Payroll platforms holding both SOC 1 Type II (financial controls) and SOC 2 Type II (security and availability) demonstrate equal rigour about accuracy and security, two sides of the same coin.

What is SOC 2 Type II

SOC 2 (System and Organization Controls 2) is also an AICPA framework, specifically for service providers handling customer data. SOC 2 audits focus on five Trust Services Criteria:

• Security, protecting against unauthorised access and threats.
• Availability, ensuring the service is up and running.
• Processing integrity, making sure data is processed accurately.
• Confidentiality, keeping sensitive information private.
• Privacy, honouring customers' privacy rights.

Type II is the demanding version. It requires an audit over a minimum six-month period, proving that controls operate consistently as designed. Type I is a point-in-time snapshot and doesn't carry the same weight.

SOC 2 Type II reports are often requested by enterprise customers before they sign a contract, serving as a standard due-diligence check for vendors handling sensitive data.

Why all three certifications matter for payroll

Payroll platforms are high-value targets for cybercriminals. An employee's salary history, bank details, and tax file number in one place represents extremely valuable stolen data. Beyond the security risk, payroll is heavily regulated. In most jurisdictions, you're legally responsible for protecting employee data and ensuring accurate financial reporting.

If your payroll provider suffers a breach, employee records are leaked, or financial data is incorrect, your organisation faces regulatory fines, potential litigation, and reputational damage.

Important: What These Certifications Prove

SOC 1 Type II, SOC 2 Type II, and ISO 27001 prove four critical things about a payroll provider. First, independent verification: third-party auditors have reviewed security controls, financial reporting controls, and information security management, finding them sound. Second, ongoing compliance: all three certifications require regular audits (annual for ISO 27001, at least annual for SOC 1 and SOC 2), meaning the provider stays current with evolving threats. Third, financial accuracy: SOC 1 Type II specifically ensures payroll data feeding into financial records is processed accurately and securely. Fourth, regulatory alignment: many regulators in the EU (GDPR), UK, South Africa (POPIA), and Brazil (LGPD) explicitly look for evidence that vendors meet recognised standards.

Deel Local Payroll's security and financial commitment

Deel Local Payroll is certified for ISO 27001:2022, SOC 1 Type II, and SOC 2 Type II. Here's what that means for your data:

ISO 27001:2022 certification

Deel Local Payroll was the first cloud-native payroll provider in Africa to achieve ISO 27001 certification (in 2019) and maintains it through annual surveillance audits. The certification covers all 93 Annex A controls, meaning every aspect of information security, from access management to incident response, is independently verified.

SOC 1 Type II attestation

Deel Local Payroll holds SOC 1 Type II certification, covering financial reporting controls. This proves that your payroll data is processed accurately and reliably, with controls that operate consistently over time. Enterprise customers can request the full SOC 1 report under a non-disclosure agreement.

SOC 2 Type II attestation

Deel Local Payroll also holds SOC 2 Type II certification, covering security, availability, and confidentiality. Enterprise customers can request the full SOC 2 report under a non-disclosure agreement.

What this means in practice

Your data is protected by:

• 256-bit encryption or greater for data at rest; TLS/SSL encryption in transit with an A+ SSL Labs score.
• Role-based access control at module, field, and unit level, ensuring employees only see what they need to.
• Multi-factor authentication (MFA) available for all users via authenticator app, email, or SMS.
• 24/7 infrastructure monitoring with automated alerting and a defined patching cycle.
• Comprehensive audit logging of all logins, data changes, and configuration updates.
• Geo-replication and disaster recovery with bi-annual testing and 14-day backup retention (monthly backups kept for a year).
• Advanced threat protection powered by Azure Security Centre, Azure Defender, and Azure Sentinel.
• Data hosted on Microsoft Azure in South Africa and Europe, with enterprise customers able to choose where their data resides.

Built for compliance across multiple jurisdictions

Beyond security and financial certifications, Deel Local Payroll is built for compliance. The platform is designed to support SARS compliance (South Africa), HMRC compliance (UK), eSocial compliance (Brazil), GDPR and UK GDPR, and LGPD data protection requirements. POPIA (South Africa's Protection of Personal Information Act) compliance is also built in.

Data Processing Agreements (DPAs) are available to enterprise customers, and breach notification is aligned with GDPR and POPIA reporting windows.

How to verify Deel Local Payroll's certifications

If you want to verify these certifications yourself, reach out to the Deel Local Payroll team:

• ISO 27001 certificate, available upon request.
• SOC 1 Type II report, available under NDA to enterprise customers.
• SOC 2 Type II report, available under NDA to enterprise customers.

Simply contact your implementation manager or our security team to request any document. No smoke and mirrors, just proof.

The bottom line

SOC 1 Type II, SOC 2 Type II, and ISO 27001:2022 aren't nice-to-haves. They're proof that a payroll provider takes security, financial accuracy, and compliance seriously and meets standards that regulators, enterprises, and security-conscious businesses depend on.

With Deel Local Payroll, your payroll data is protected by industry-leading certifications, continuous monitoring, and a commitment to compliance across 45+ jurisdictions.