--- title: Why Thread Chooses to Do a SOC Audit and What It Means for Our Clients description: Thread voluntarily completes a SOC 2 audit each year to protect payroll and HR data, building client trust, ensuring accuracy, and strengthening security. image: https://media.istockphoto.com/id/1434119140/photo/business-people-planning-collaboration-and-teamwork-on-a-startup-project-in-an-advertising-or.jpg?s=612x612&w=0&k=20&c=504LYzj0EaeaHFtBMtx8ubgtW39ZGuyJ4O03tR7TOmk= --- - - - - [Solutions](https://threadhcm.com/solutions/) - [Applicant Tracking](https://threadhcm.com/applicant-tracking/) - [Human Resources](https://threadhcm.com/human-resources/) - [Payroll](https://threadhcm.com/payroll/) - [Time](https://threadhcm.com/time/) - [Benefits Enrollment](https://threadhcm.com/benefits/) - [ACA Compliance](https://threadhcm.com/aca-compliance/) - [Employee Experience](https://threadhcm.com/employee-experience/) - [Learning Management](https://threadhcm.com/learning-management-system/) - [HR Consulting](https://threadhcm.com/hr-consulting/) - Resources - [Daily Thread Blog](https://blog.threadhcm.com/) - [Free Webinars](https://threadhcm.com/webinars/) - [isolved Releases](https://blog.threadhcm.com/tag/isolved-releases) - [HR eAlerts](https://blog.threadhcm.com/tag/hr-ealerts) - [Infographics](https://blog.threadhcm.com/tag/infographics) - [Press Releases](https://blog.threadhcm.com/tag/press-release) - [![Thread HCM](https://blog.threadhcm.com/hs-fs/hubfs/Thread_February2020%20Theme/Images/thread-logo-green.png?width=100&height=100&name=thread-logo-green.png "Thread HCM")](https://threadhcm.com) - [Your Happiness](https://threadhcm.com/measuring-your-happiness/) - About - [Our Story](https://threadhcm.com/our-story/) - [Our Culture](https://threadhcm.com/our-culture/) - [Our Team](https://threadhcm.com/team/) - [Associations & More](https://threadhcm.com/associations/) - Contact - [Get In Touch](https://threadhcm.com/contact/) - [Careers at Thread](https://threadhcm.com/careers/) - [Broker or advisor?](https://threadhcm.com/partners/) - [Client Referrals](https://offers.threadhcm.com/refer-a-friend) - [Thread Office Closures](https://offers.threadhcm.com/thread-closures) - [![Demo](https://no-cache.hubspot.com/cta/default/2515809/a2b12e0e-ed5a-400b-912c-d234fd8519d8.png)](https://cta-redirect.hubspot.com/cta/redirect/2515809/a2b12e0e-ed5a-400b-912c-d234fd8519d8) - *search* *Press enter to begin your search* [![Thread HCM](https://blog.threadhcm.com/hs-fs/hubfs/Thread_February2020%20Theme/Images/thread-logo-green.png?width=250&height=250&name=thread-logo-green.png "Thread HCM")](https://threadhcm.com/) - Solutions - [Applicant Tracking](https://threadhcm.com/applicant-tracking/) - [Human Resources](https://threadhcm.com/human-resources/) - [Payroll](https://threadhcm.com/payroll/) - [Time](https://threadhcm.com/time/) - [Benefits Enrollment](https://threadhcm.com/benefits/) - [ACA Compliance](https://threadhcm.com/aca-compliance/) - [Learn + Learn Pro LMS](https://threadhcm.com/learning-management-system/) - [Consulting](https://threadhcm.com/hr-consulting/) - About - [Our Story](https://threadhcm.com/our-story/) - [Our Culture](https://threadhcm.com/our-culture/) - [Our Team](https://threadhcm.com/team/) - Resources - [Daily Thread Blog](https://blog.threadhcm.com/) - [Infographics](https://blog.threadhcm.com/tag/infographics) - [Press Releases](https://blog.threadhcm.com/tag/press-release) - [iSolved Releases](https://blog.threadhcm.com/tag/isolved-releases) - [Webinars – Live & On Demand](https://threadhcm.com/webinars/) - Contact - [Get In Touch](https://threadhcm.com/contact/) - [Careers at Thread](https://threadhcm.com/careers/) - [Broker or advisor?](https://threadhcm.com/partners/) - [Client Referrals](https://offers.threadhcm.com/refer-a-friend) - [Thread Office Closures](https://offers.threadhcm.com/thread-closures) - [Demo](https://threadhcm.com/demo/) - - - [Compliance](https://blog.threadhcm.com/tag/compliance) # Why Thread Chooses to Do a SOC Audit and What It Means for Our Clients By [Lori Winters](https://blog.threadhcm.com/author/lori-winters) August 27, 2025 At Thread, our mission has always been to build trust with our clients and partners by handling their most sensitive data with care and integrity. That is why, even though it is not required for a privately held company like ours, we choose to undergo a **SOC audit** every year. A SOC (Systems and Organization Controls) audit, performed by an independent CPA firm, evaluates how well a service organization is protecting and managing client data. For Thread, it is not just a certification. It is a reflection of our commitment to excellence and accountability. ## **What Is a SOC Audit?** A SOC audit is a third-party assessment of the internal controls and processes a company uses to secure client data. For clients, it provides reassurance that their information is being handled with accuracy, confidentiality, and integrity. There are **two types of SOC audits**: - **Type 1**: Reviews processes and controls at a single point in time. - **Type 2**: A more comprehensive audit that evaluates how consistently those controls are applied over a 6 to 12-month period. At Thread, we undergo the **Type 2 audit**, the more rigorous standard that requires proof and validation across an entire year of operations. ## **Why Thread Voluntarily Completes SOC Audits** Unlike publicly traded companies, privately held companies like Thread are not required to undergo a SOC audit. So why do we choose to do it? - **To serve enterprise-level clients and banks**: Many organizations require their vendors to be SOC certified. - **To protect our clients’ trust**: Peace of mind matters. Knowing their data is safe builds confidence in every interaction. - **Because it is the right thing to do**: Segregation of duties, multiple sign-offs, and independent verification are practices that strengthen our culture as well as our compliance. ## **The Benefits for Clients and Partners** Our SOC audit is not just about compliance. It is about protecting relationships. For clients, it means their payroll and HR data is handled with the highest level of care. For partners, it reinforces confidence when referring Thread to their own networks. The audit also reduces risks such as: - Data inaccuracies during client onboarding - Payroll processing errors - Tax filing mistakes Multiple checkpoints, sign-offs, and reconciliations are built into every workflow to minimize risk. ## **A Company-Wide Effort** Preparing for and passing a SOC audit is not limited to one department. It involves the entire Thread team: - **Leadership** defines and documents our controls. - **Sales** ensures clients and prospects are thoroughly vetted. - **Implementation** demonstrates correct data handling and sign-offs. - **Processing and Support** prove accuracy in payroll runs. - **Tax** safeguards filing, reconciliation, and compliance with multiple layers of review. Every team member contributes to making the audit a success. ![16,300+ Audit Team Stock Photos, Pictures & Royalty-Free Images - iStock | Internal audit team, Diverse audit team](https://media.istockphoto.com/id/1434119140/photo/business-people-planning-collaboration-and-teamwork-on-a-startup-project-in-an-advertising-or.jpg?s=612x612&w=0&k=20&c=504LYzj0EaeaHFtBMtx8ubgtW39ZGuyJ4O03tR7TOmk=) ## **How the Process Works** The SOC audit is ongoing in nature, since controls must be followed **every single day**. However, the formal review process typically includes: 1. **Preparation**: Updating documentation of systems and controls. 2. **Evidence Gathering**: Uploading proof to a secure portal, often based on random dates provided by the auditor. 3. **Onsite Audit**: A week-long review where the auditor interviews team members, observes payroll runs, and verifies processes. 4. **Reporting**: The CPA firm delivers a formal SOC report, which we review and share with clients or partners who request it. ## **More Than an Annual Check-In** At Thread, SOC compliance is not something we think about once a year. It shapes our daily operations. Whether it is processing payroll, reconciling taxes, or implementing new clients, every step requires checks, balances, and multiple sets of eyes. Each year, we look for ways to **improve our controls even further**, often implementing recommendations provided by our auditors. ## **What It Says About Thread** Passing a SOC audit every year is something I am deeply proud of. It says that: - We put our clients’ trust first. - We hold ourselves to the highest standards of data protection. - We are committed to continuous improvement. For clients, prospects, and partners, our SOC certification is more than a report. It is proof that Thread is a company they can rely on to do the right thing, every single day. At Thread, our SOC audit is more than compliance. It is a reflection of who we are: a company built on trust, integrity, and an unwavering commitment to our clients. ### Looking for a partner who puts compliance and client trust first? 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