Some Cons of Outsourcing Payroll

Choosing a payroll service to handle payroll is something in which thousands of businesses do each and every day and yet there are many who are firmly against outsourcing. While there are many positives to support outsourcing, there are also a few draw-backs that go against it. The following are a few cons when it comes to outsourcing payroll duties.

You Don’t Meet Your Payroll Service Face-To-Face

Another small draw-back or con of outsourcing has to be the fact that you hire the payroll company over the web. Now, this isn’t a bad thing, but you don’t usually get to meet the people you hire. Yes, you talk to them via Skype or instant messages, or through emails and even sometimes on the telephone, but is that really the same? No, it’s not, and it’s a worry to say the least. If you aren’t meeting a person face-to-face, you can’t always be sure they’re the best for the job. You might not feel comfortable with them or you might think they’re not qualified enough. However, if you look at payroll outsourcing you can’t always be sure.

You’re not actually making Great Savings

There is a big misconception that with payroll outsourcing you’re automatically able to save thousands and thousands of dollars per month. However, that isn’t the case. Yes, it is possible to save money, but you aren’t going to see those savings until the end of the year and they may not be terrible big either. It all depends on what you were paying the employee before and the amount you pay each month, but too many people think they’re getting back thousands and sometimes that isn’t the case. Money can be saved, but it’s not all at once or in great amounts.

You Have Less Control over Payroll

When you have an employee in the office dealing with payroll then you technically had tight control over what was happening. You knew when the work was being done and by whom but when you outsource to a payroll service then this changes slightly. You might hire a person to do the work, but that doesn’t actually mean they’re the ones doing it and you don’t have as much control either. The reason is because the payroll professional use their server rather than your business one which means you don’t have free access. This is a little concerning and a big drawback of outsourcing.

Nothing Is Perfect

Outsourcing isn’t always bad, but if you’re thinking about it, you must know everything about it and that does include the negatives as well as the positives. There is nothing totally perfect in life and it’s the same with outsourcing. Outsourcing can go two ways: It can go perfect for those with the right payroll company and it can also go terribly wrong. Sometimes, if you don’t get the right fit for the business, then outsourcing doesn’t work effectively. It’s not always easy to say outsourcing is perfect because it isn’t, and, even though it’s very popular, it does have its flaws. Payroll outsourcing does have a few negatives surrounding it and you should be aware before choosing this route.

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