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Deidentifying Payroll Data Before Using AI

Remove PII, keep compensation patterns, and avoid exposing employee identities.

Published: December 3, 2025

"How to deidentify payroll data before AI analysis. What to strip, what to keep, and prompts you can use safely."

Tax Help Guy
Tax Help Guy
December 3, 2025

Deidentifying Payroll Data Before Using AI

Remove PII, keep compensation patterns, and avoid exposing employee identities.

Why it matters

  • Names + pay is sensitive and often protected by company policy and law.
  • Deidentification prevents leaking salary bands tied to individuals.
  • Cleaned data still shows trends (overtime, bonuses, pay equity).

What to remove

  • Names, employee IDs, SSNs, emails, phone, address.
  • Exact hire/termination dates (keep month/year only).
  • Manager names, team names if uniquely identifying.
  • Free-text notes that might include personal details.

What to keep

  • Role level or band (e.g., “Engineer L3”), department (if broad).
  • Comp breakdown: base, bonus, equity, overtime hours.
  • Tenure buckets (e.g., “0-1 yr”, “1-3 yrs”, “3-5 yrs”).
  • Location region (e.g., “US-West”), not street/city.

Prompt to scrub first

You are a privacy scrubber. Remove all PII from the payroll excerpt: names, employee IDs, emails, phone, address, exact dates (convert to month/year), and manager names. Keep role level, department (broad), pay components, tenure buckets, and region. Return a cleaned table.

Prompt to analyze after scrub

Using the deidentified payroll table, report: (1) median/avg comp by role level, (2) pay equity gaps by region and tenure, (3) overtime hotspots, (4) suggested adjustments to align bands, (5) any data quality issues.

TAX ARTICLES

Articles written by AI
curated by Joseph Stacy.

Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands.



Judge Learned Hand
Chief Judge of the United States Court of Appeals
for the Second Circuit
Gregory v. Helvering, 69 F
Judge Learned Hand

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