ITG FAQ #3 Answer-How should records be stored?
The site you select for storage of records should be carefully chosen. You will want your back up copies to be reasonably secure from physical damage including fire, flood, theft, insects, rodents, temperature and humidity. While paper documents may seem more sensitive to these hazards, you will want to provide the same safeguards for your computerized records.
You also want to ensure privacy of your records by restricting access to those persons with a "need to know." Payroll records contain a great deal of personal information, and employees depend on their employers to keep this information confidential. Employee names, addresses, and social security numbers, in addition to items like notices of employee levies, garnishments, and child support payments should always be kept secure.