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DATA SECURITY & PRIVACY DISCLOSURE

Last Updated: January 2026

Escochex Payroll is committed to protecting the confidentiality, integrity, and availability of client and employee data. We employ industry-standard administrative, technical, and physical safeguards designed to protect sensitive payroll, tax, and personal information against unauthorized access, disclosure, alteration, or destruction.

I. Information Security Program

Escochex Payroll maintains a formal information security program designed to align with recognized industry frameworks and best practices for SaaS-based payroll systems. Our security program is structured around the following core principles:

  1. Defense-in-depth security architecture

  2.  Least-privilege access and role-based controls

  3. Continuous monitoring and risk assessment

  4. Secure software development and deployment practices

  5. Incident detection, response, and recovery planning

Security responsibilities are assigned to designated personnel with oversight from executive management.

2. Data Encryption & Transmission Security

Escochex Payroll employs encryption technologies to protect data both in transit and at rest, including:

  1. TLS 1.2 or higher encryption for data transmitted over public and private networks

  2. AES-256 encryption for sensitive data stored within Escochex Payroll systems

  3. Secure key management practices to limit access to encryption keys

These measures help ensure that payroll, tax, and personal identifiable information (PII) remain protected throughout its lifecycle.

3. Access Controls & Authentication

To prevent unauthorized system access, Escochex Payroll implements multiple access control
mechanisms, including:

  1. Role-Based Access Control (RBAC) to restrict system access based on job function

  2. Multi-Factor Authentication (MFA) for administrative and privileged user access
    (where applicable)

  3. Strong password requirements and credential management policies

  4. Session timeout and account lockout protections

Access rights are reviewed periodically and adjusted promptly upon role changes or termination.

4. Infrastructure & Hosting Security

Escochex Payroll operates on secure, cloud-based infrastructure designed to meet modern
security and availability standards, including:

  • Hardened server environments and network segmentation

  • Firewall protection and intrusion detection/prevention systems

  • Continuous monitoring for suspicious activity

  • Regular system patching and vulnerability remediation

Physical access to hosting facilities is restricted and monitored by the infrastructure provider.

5. Secure Development & Change Management

Escochex Payroll follows secure software development lifecycle (SDLC) practices, including:

  • Code reviews and controlled deployment processes

  • Separation of development, testing, and production environments

  • Change management procedures to reduce operational risk

  • Ongoing system improvements to address security vulnerabilities

6. Incident Response & Breach Notification

Escochex Payroll maintains an incident response plan designed to identify, contain, investigate,
and remediate security incidents in a timely manner.

​

​In the event of a confirmed data security incident involving customer data, Escochex Payroll
will:

  • Promptly investigate the incident

  • Take steps to mitigate potential impact

  • Notify affected clients in accordance with applicable data protection laws and contractual

    obligations

7. Third Parties & Vendor Risk Management

Escochex Payroll evaluates third-party service providers that may access or process customer
data to ensure they meet appropriate security and confidentiality standards. Vendor relationships
are governed by contractual obligations related to data protection and confidentiality.

  • Collecting only data necessary to provide payroll and compliance services

  • Limiting access to personal data to authorized personnel

  • Retaining data only as long as required for legal, regulatory, and business purposes

  • Secure disposal or deleting data when no longer required

8. Data Privacy & Confidentiality

Escochex Payroll is committed to protecting personal data and handling information responsibly.
Our privacy practices include:

Escochex Payroll complies with applicable U.S. federal and state privacy regulations and applicable international data protection principles where relevant.

9. Business Continuity & Data Availability

Escochex Payroll maintains business continuity and disaster recovery procedures designed to
support system availability and data resilience, including:

​​

  • Regular data backups

  • Redundancy and failover capabilities (where applicable)

  • Recovery procedures tested periodically

10. Client Responsibilities & Security Awareness

Clients play an important role in protecting their accounts. Escochex Payroll recommends that clients:

  • Safeguard login credentials

  • Enable multi-factor authentication when available

  • Monitor account activity regularly

  • Report suspicious activity or potential security concerns promptly

Escochex Payroll will never request passwords or sensitive authentication credentials via unsolicited email or phone calls.

11. Ongoing Security Improvements

Security is an ongoing process. Escochex Payroll continuously evaluates and enhances its security controls to address evolving threats, regulatory requirements, and technological advancements.

12. Contact Information

For security questions, concerns, or incident reporting, please contact:

​

Escochex Payroll Security Team
security@escochex.com
www.escochex.com

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