tx condo board member access to individual employee payroll information

Started by LaskaS • 10 replies • 170 views

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LaskaS (Texas)
Posts: 1,025

Posted:

Hi, I have a detailed question. Does a board member of a texas condominium association have access to individual employee payroll records. I.e. like those that would be available with a third party vendor. ADP, or Paychex. I can understand that the aggregate totals may be needed , but I don't think that a volunteer board member can demand access to all payroll records just because they are treasurer. We are a condominiu community who has an accounting company that does all of our account receivable and accounts payable and financial reports. We as an association, hire and pay our own property manager and two maintenance employees.

The treasurer is requesting complete access to all employee records in paychex. Can someone provide me with information that would support my contention that this kindo f access is not justified .

TimB4 (Tennessee)
Posts: 21,059

Posted:

Per the TX Business Organization Code:

Sec. 3.152. GOVERNING PERSON'S RIGHT OF INSPECTION. (a) A governing person of a filing entity may examine the entity's books and records maintained under Section 3.151 and other books and records of the entity for a purpose reasonably related to the governing person's service as a governing person.

I would think that a Treasurer should have full access to all financials.

I personally believe that every Director should have full access to all financials if there is a reasonable reason to have such info.

DouglasK1 (Florida)
Posts: 2,046

Posted:

The board runs and is legally responsible for the association, they should have access to all records.

Escaped former treasurer and director of a self managed association.

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By LaskaS on 12/25/2025 3:32 PM
We are a condominiu community who has an accounting company that does all of our account receivable and accounts payable and financial reports. ...
The treasurer is requesting complete access to all employee records in paychex.

Who controls the paychex software?

I am not so sure that these paychex records belong to the condo association.

LaskaS (Texas)
Posts: 1,025

Posted:

Financials are one thing.

the board has access to all of the financials regarding money spent and money received by the association.

We already have the aggregate payroll information. How much we pay for maintenance employees. etc.

In my opinion,there is no justifiable reason for a board member to have access to the tax and social security and personal financial banking info of an individual employee.

I think he is asking for the access because he thinks he should have access.. That's not a valid reason

ElleN (Idaho)
Posts: 1,334

Posted:

Quote:

Posted By LaskaS on 12/27/2025 3:16 AM
Financials are one thing.

the board has access to all of the financials regarding money spent and money received by the association.

We already have the aggregate payroll information. How much we pay for maintenance employees. etc.

In my opinion,there is no justifiable reason for a board member to have access to the tax and social security and personal financial banking info of an individual employee.

I think he is asking for the access because he thinks he should have access.. That's not a valid reason

It depends on what the treasurer means.

focus should be on whether that is in paychex is a "record of the association." If so, the treasurer is entitled to see these records.

See Bylaws Article IV, Section 3 (l).

See Bylaws Article VI, Section 8.

See statute section 81.209 (in your Condo Act, Chapter 81 version).

See statute sections 22.351 and 22.352

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By LaskaS on 12/25/2025 3:32 PM
Hi, I have a detailed question. Does a board member of a texas condominium association have access to individual employee payroll records. I.e. like those that would be available with a third party vendor. ADP, or Paychex. I can understand that the aggregate totals may be needed , but I don't think that a volunteer board member can demand access to all payroll records just because they are treasurer. We are a condominiu community who has an accounting company that does all of our account receivable and accounts payable and financial reports. We as an association, hire and pay our own property manager and two maintenance employees.

The treasurer is requesting complete access to all employee records in paychex. Can someone provide me with information that would support my contention that this kindo f access is not justified .

I think the answer what is reasonable for proper oversight. That would certainly include all time records and payroll distribution records. Social security, bank account or retirement account numbers, W4 deduction election information and most health insurance information is beyond reasonable.

SheliaH (Indiana)
Posts: 6,964

Posted:

I agree with Dean and Laska.

ElleN asked who controls the payroll software and I didn't see where that question was answered. If the association is paying a property management company to handle the association's day to day, I see no reason for the association to have access to that information and i was board treasurer and didnt need it, nor did I think of asking for it). Especially if there aren't any specific reasons why the treasurer or anyone else on the board to know how much the property manager's secretary is being paid or the combined salaries of the IT department.

Does this association even have any policies and procedures in place to protect personal information like SSNs? These days when everyone's personal data has been hacked or put at risk of being hacked, do you want some random person to have that type of access while his/her justification to access the information is "I'm board treasurer so it's justified?" Are you high?

I saw Laska's conversation about the board attempting to dump her contrary to the documents- if this is their reason, I say fight it big time - and I wonder what the employees (whoever they work for) would say if they knew Bob the retired baker/board treasurer wants access to their information because....

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

DeanJ
Posts: 1,786

Posted:

Quote:

Posted By SheliaH on 12/28/2025 7:05 PM
I agree with Dean and Laska.

ElleN asked who controls the payroll software and I didn't see where that question was answered. If the association is paying a property management company to handle the association's day to day, I see no reason for the association to have access to that information and i was board treasurer and didnt need it, nor did I think of asking for it). Especially if there aren't any specific reasons why the treasurer or anyone else on the board to know how much the property manager's secretary is being paid or the combined salaries of the IT department.

Does this association even have any policies and procedures in place to protect personal information like SSNs? These days when everyone's personal data has been hacked or put at risk of being hacked, do you want some random person to have that type of access while his/her justification to access the information is "I'm board treasurer so it's justified?" Are you high?

I saw Laska's conversation about the board attempting to dump her contrary to the documents- if this is their reason, I say fight it big time - and I wonder what the employees (whoever they work for) would say if they knew Bob the retired baker/board treasurer wants access to their information because....

Shelia,

My thoughts on the issue is to assure fraud is not being committed. If a payroll service fails to submit payroll taxes to various govt agencies, the HOA is liable for those payment failures. And yes, they have been rather large payroll companies that these funds were stolen and the clients were on the hook.

Another situation is a managers falsifying time records and having straw employees to steal funds.

NameW1 (Texas)
Posts: 32

Posted:

Quote:

Posted By TimB4 on 12/25/2025 10:50 PM
Per the TX Business Organization Code:

Sec. 3.152. GOVERNING PERSON'S RIGHT OF INSPECTION. (a) A governing person of a filing entity may examine the entity's books and records maintained under Section 3.151 and other books and records of the entity for a purpose reasonably related to the governing person's service as a governing person. ....

Great answer

LaskaS (Texas)
Posts: 1,025

Posted:

actually,, our accounting company handles all taxes and filing. I do not disagree that every board member has a right to view the payroll data in aggregate. They could even request(from our accounting company) an individual employee breakdown. But they can not just log into the payroll processor and go digging.

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