Debunking Common POM Misconceptions

Payroll outsourcing can do everything for you from calculating pay and tax deductions, to processing and producing monthly payroll reports. Running payroll can be time-consuming and when done in-house, can be prone to inaccuracies. There are also a lot of potential legal implications, should any miscalculations arise. For these reasons, many businesses leave their payroll to the experts. Namely, Payroll Outsource services leave businesses with a peace of mind, and also means they have more time to focus on other tasks. However, some businesses stay on the fence about engaging Payroll Outsourcing services. Misconceptions about payroll outsourcing services are common, and could be holding your business back. With that being said, here are five common misconceptions about Payroll Outsourcing services, and the realities of them. 

  • Outsourcing Your Payroll Will Replace the Payroll Team

The payroll team being replaced by Payroll Outsourcing services is a very understandable worry that many people have. However, this is not the case. In fact, outsourcing your payroll can actually lead to more empowered, productive payroll staff. They will be relieved of repetitive, tedious tasks such as calculating taxes and checking accuracy of payroll. Payroll Outsourcing can also result in a more productive payroll team, as they have more time to focus on responding to client queries as well as analyse and make decisions based on monthly payroll reports. While many have the misconception that the payroll team will lose their job due to payroll outsourcing, this is actually false. In fact, payroll outsourcing actually facilitates and enhances their work. This gives them an even more impactful, strategic and productive role in your business.

  • Payroll Outsourcing is Expensive

There are actually many affordable Payroll Outsourcing services that can be tailored based on both your needs and your budget. For many, Payroll Outsourcing is something of an investment. When you are running a business, time is literally money. Payroll Outsourcing allows you to save plenty of time as compared to performing these tasks in-house. Furthermore, it saves you the indirect costs of compliance issues, lawyers and additional HR Expertise. In short, Outsourced Payroll services are designed to save time, which in turn saves money. A good Payroll Outsourcing service offers accurate calculations and powerful analytics, which can also help you make profitable, impactful business decisions. Payroll Outsourcing is an investment that can save your business plenty of time and money.

  • Payroll Outsourcing Poses a Security Risk

Many believe that Payroll Outsourcing can pose some serious data risks as compared to in0house payroll processing. However, in-house payroll processing comes with a big security risk in and of itself. This includes serious data and privacy breaches such as identity theft and embezzlement. On contrary, outsourced payroll services generally have secure, highly protected servers and networks. Quality Payroll Outsourcing services store data on high-security, cloud-based servers. Cutting-edge encryption technology also ensures that your most crucial data stays safe. Quality security is essential for solid Payroll Outsourcing services. As such, payroll outsourcing does not actually pose any security risks, and can actually prove to assist your business in heightening security for crucial and confidential information.

  • Payroll Outsourcing is Only for Big Companies 

Regardless of how many employees you have, the many struggles and troubles that come with processing your payroll stay pretty much the same. The business stays responsible for filing tax returns, sending payroll tax payments and payroll report processing. Needless to say, this requires complete compliance to all legislations, which again, is a common hassle for payroll teams regardless of business size. As you can see, the troubles of payroll outsourcing remain the same regardless of how big, or small a company is. In the long run, outsourcing your payroll can save you plenty of time and trouble.

  • Outsourced Payroll Systems are too Rigid

Many outsourced payroll systems have flexible solutions, which can be tailored to suit the needs of your business. Depending on your business size, payroll necessities and budget, you can book a consultation with payroll outsourcing vendors, and they will be more than happy to recommend you solutions based on your limitations and requirements. Some systems also provide you with the option to customise reports.


While there are many misconceptions when it comes to payroll outsourcing, many of them do not have much truth to them. Outsourcing your payroll can be incredibly value-adding and convenient to both your business, and your business’s greatest asset – your employees. JuzTalent’s ePayroll system helps you with just that, while ensuring that you stay compliant to all legislations, regardless of which country your business is operating in.

Recent Posts