Biggest thing is, "Why are we taking SSNs and putting them into an employee database?" Is it for I9 reporting? Actually, it doesn't matter, lets pretend its a valid reason.
Cheap shared hosting and Personally Identifying formation don't really mix. But, unless the client is required to maintain information security to a set standard under penalty of law, you don't need to go all out and follow the GSA Privacy Directive or FIPS standards for information security -- your client probably doesn't want to afford that level of protection and they aren't being actively targeted by an adversarial group.
As long as you have a contract in place that removes liability in cause their inaction or action (their fault) causes them to have a data breach, you're reasonably certain that the security precautions you've taken are secure to defeat the types of people you reasonably believe to be the threat, and you're not negligent in your security practices, I think this plugin is enough.
Mainly because it uses an industry standard cryptological solution, Shared Key Authentication through OpenSSL, I think the plugin itself is secure enough (if properly setup to the instructions) hold personally identifiable information as long as it is keyed in from a website that is protected via SSL as well.
Hopefully someone else has more experience with general business requirements for PII and can say something on this.
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