Payroll Alert! Cons of Outsourcing your Payroll

Cons of Outsourcing your Payroll
Reading Time: 2 minutes

Are you worried about your payroll? Are you thinking to outsource your payroll operations? If your answers are yes for both these questions, you have landed on the right page, as this article will throw light on a few downturns of outsourcing payroll. Yes, outsourcing your payroll to a vendor has its own share of risks.

Consider the below-mentioned cons of outsourcing your payroll:

  • The threat to confidential data

Yes, handing over your payroll operations to a vendor can make all your financial data vulnerable and exposed to hackers and wrongdoers resulting in lawsuits and data breaching problems. This is the reason there needs to be a clause in the agreement or contract assuring protection to all your confidential and financial data.

Click here to learn more about payroll security.

  • Undependable

Outsourcing payroll operations increases the threats of being associated with an undependable entity or firm. In addition, many payroll service providers may not be adept enough to handle the unique requirements or aspects of a company’s payroll thus, resulting in payroll errors that can cost dearly to a business.  Also, the quality of service provided may not be satisfactory leading to a waste of time, efforts, and money if you have employed an undependable vendor to address your payroll operations.

  • Lack of control

When a company hands over its payroll operations to a vendor, it voluntarily bestows the vendor with all the managerial control and power. In such a scenario, the vendor owns full control over your payroll department and all the related data. On the other hand, having a cloud-based payroll software empowers you with mobility.

Therefore, before you sign on that dotted line and hand over your payroll operations to a third party or vendor, make sure to weigh the demerits of doing the same, since it can have a direct impact on your business.

In case you have any concerns or queries regarding payroll, feel free to write to us at You can also give us a shout-out on our Twitter and Facebook.


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