Three Common Misconceptions of Payroll Outsourcing

Payroll outsourcing has become a growing practice. With its advantages, a lot of companies are now opting to partner with payroll outsourcing providers. Despite the proven benefits, there are still a few misconceptions about payroll outsourcing. Here are three misconceptions that need some clarity.

Payroll outsourcing is costly. Wrong. Many companies have now realized that handling payroll in-house is more expensive than outsourcing. With the amount of time and people it can take to handle payroll, a lot of companies have found that payroll outsourcing has been a better way to reduce costs. Professional payroll providers can also save companies from BIR penalties or DOLE disputes due to incorrect processing of payroll or failure to adhere to the latest tax tables and social security contributions.

Payroll Outsourcing is not Secure. Not the case. Professional payroll providers will always take extra precautions to avoid data breaches. Given the high level of sensitive data, payroll providers go above and beyond to keep client information safe and secure.

Payroll Outsourcing is a Complicated Process. False. To get you easily set up in motion, most payroll providers have simple, user-friendly systems in place. A trusted provider like Circa Logica Group will help you prepare, gathering information they need in advance to understand your needs, leading to a smooth and easy transition.


Reference: Harney, R. (2019, March 5). In-House Payroll vs. Outsourcing Payroll Services. Retrieved from LBMC Family of Companies:

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