Payroll Services
Published November 10th, 2016 by

7 Common Misconceptions About Payroll Outsourcing

7 Common Misconceptions About Payroll Outsourcing

Any person who has a background in business knows that payroll is among the most fundamental aspects of all kinds of business. With all its complexities, it can also be considered as a task which demands a lot of time and work. As businesses move in a rather dynamic manner to compete with other trades and to stay long in the arena, rendering extra work on jobs that can take away so much time instead of finishing mechanisms to boost the business itself can be a disadvantage.

This is where payroll outsourcing will enter. Payroll outsourcing, according to, happens when a business company employs a third-party payroll processing agency. Also, this may refer to the trade to trade service in which one business company will have to arrange for payroll processing and some other functions that are payroll-related to another business. On the other hand, payroll processing involves employee records and employee salary computation and complying of requirements of various government agencies. Trades also make use of the Best Payroll Processing Services to loosen up workloads.

With the busy schedule businesses have, it is no wonder that trades, invest in this convenient process to get the job done. However, despite of its obvious advantages, many business owners are still hesitant in investing in one due to the unproven fallacies that linger along with its name.

In this article you will learn the 7 most common misconceptions about payroll outsourcing, and a few traits of a reliable payroll outsourcing that can serve your business.

Payroll Outsourcing is Expensive

According to, many perceive that payroll outsourcing is costly and is only fit for big businesses that have already built their own names. Contrary to popular belief, payroll outsourcing services can actually help you save some cash. Big and small businesses find it cheaper to outsource payroll than to rely on in-house payroll system or make some of your employees carry the baggage of the complicated tasks brought by managing the payroll.

But how much does payroll outsourcing cost, really? This actually depends on the company that you are going to do business with. In reality, some companies may introduce you to a specific price at first, only to find out later that there actually are hidden fees which you are going to pay still. With this, you always need to be vigilant in entering transactions and remember that a good payroll partner to do business with will introduce you with a fixed price and a good service, with no extra expenses.

Unreliable Security Measures

Another reason why most people think that payroll outsourcing does not side to their advantage is the very much unwanted possibility of sensitive information exposure. Because another party will be having access to various information like the employee’s bank account number, conclusions that payroll outsourcing services are not advisable, and even dangerous.

However, you have to consider that regardless of the method used, whether this involves payroll outsourcing or not, things are, employee’s sensitive information will always have this chance to be exposed, especially if not backed by a hectic security measure.

With this, payroll outsourcing can even be considered way safer than most people consider it to be—payroll experts are specially trained to make sure that sensitive information of each employee will not be compromised.

Lose Control of Your Own Payroll Activities

This is among the most common fallacy many people consider about payroll outsourcing. You might think that partnering up with another party that will have access to their business’ payroll records will make them lose absolute control of your own activities. Although it is true that partnering up with the payroll outsourcing industry means giving them permission to your own payroll activities does not mean that you are going to lose control of your own tasks.

Remember that payroll outsourcing is not your contender, but rather it will serve as a partner to assist you in making your work lighter. Without it, your time will be divided and work will be multiplied.

Payroll Outsourcing Setup Is Too Complicated

Like the Payroll Processing Service, some perceives that the setting up of payroll outsourcing is often a difficult task to do. In truth, there are several steps which you need to follow before you can set up one. cited 10 customary steps to follow when setting up payroll processing. Just like these steps, you will have to follow up certain documents. Below are the list of the factors you need to consider in order to step by step initiate payroll outsourcing as cited at

  1. Number of employees. Find out the number of employees found in your payroll. The amount of time needed for the payroll company to set up varies from the amount of employees you have. Because personal information, files and documentations are among of the primary requirement to submit, it is crucial to make them know how big or small your group of employees is.
  2. Another factor to consider is the organization complexities and cover of services that must be performed. Various agencies deliver different forms of services with varying prices that differ rendering of what the client’s necessity. Since some businesses only contain a number of employees to handle, it may not need to reach the refined plans that a global corporation will need, hence, processing services much quicker.
  3. The payroll company itself is another factor which needs to be considered in order to set up the payroll system. Since payroll agencies contain their own standards of measurement and competence, it is significant to select the best agencies that can sustain your business requirements. Before establishing any relations, make sure to research proficiently on the company’s good status, and can assure an error free dealing with government protocols.
  4. Lastly, the factor that most strikes the time to process payroll outsourcing is the location where your business is coming from. Every country contains different policies, rules and procedures which greatly affects the other mentioned factors.

True enough, there are various procedures which you have to comply. It may be a task that will require you quite some work. However, it is not as complicated as some may consider it to be.

Payroll Outsourcing Is Not Meant For Small Businesses

Many newly established small businesses are skeptic in investing in payroll outsourcing. This reason is related to the first one mentioned as these small business owners find the cost of payroll outsourcing expensive for their humble trades to afford. However, payroll agencies which offer payroll outsourcing for small business proves that its pricing is not only meant for big business companies, but are also made available for new and smaller trades.

It Affects Your Employees’ Jobs

Another concern that bugs individuals in relying to third party agencies the payroll outsourcing is that it gravely affects your employees’ jobs, especially those that belong in the field of human resource. Many believe that your own employees’ works can be compromised.

In some cases, some business utilizes their own employees to do the critical task of finishing up the payroll. But since it requires an amount of time and effort, some works will be left unattended. With this in mind,

However, you should remember that your employees can contribute greatly to the enhancement of your business if you let them contribute to your trade growth.

Calculations Aren’t Constantly Finished on Time

Finally, going to the last fallacy, some believe that these payroll outsourcing trends are not reliable when it comes to finishing tasks up. This skepticism about payroll outsourcing is caused by the fact that a business is actually relying on another third party company to do the drill. However, trustworthy payroll outsourcing providers are committed to processing their payroll on time so that trades will have to rest easy that their employees’ payments will be delivered in the appropriate time frame.


With all the glitches brought by payroll responsibilities, it is not a surprise that many businesses are putting their trust and money to efficient payroll agencies to patch things up on their behalf. Many payroll services have been developed in order to provide trades extra hand when dealing with their obligations.

An article in connoted that the world has actually heightening up with all the advancements in technology. Advancing to more current means of doing business will aid you in easing all the stress brought by workloads, and will help you save some time along the way. If you are afraid to take chances and place your trust and interest in payroll services, you can look for reviews given by other users. There are Reviews of Payroll Processing Services and payroll outsourcing to help you determine the best possible agencies that can help grow your business.

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