The Hidden Agenda of Outsourced Payroll Providers Not only do payroll companies charge check and account fees, but on every check, income tax is withheld which is then sent to the Internal Revenue Service or IRS. They leave employees' tax revenue in their accounts until the eleventh hour, allowing them to collect interest on that amount while the money is in their account. This can be huge when you consider the strength of your employees over a period of time. Information control With in-house payroll, the organization's security concerns are better satisfied. All data containing highly sensitive information such as employee compensation and benefits policies and packages resides in your database itself rather than storing it with the payroll provider. This way, the organization can also choose to limit access to payroll components and software. will be controlled only by those who are required to do so. which otherwise an outsourced provider may charge additional fees or impose penalties or even delays and complications due to these changes in working hours in the company. Data Control and Reporting When the system is in-house, it is easier to access and analyze data using the reporting tools used in the organization. From the different components of payroll, costs, trends in the cafeteria approach, use of resources. Through data warehousing and business intelligence, this information can act as a powerful tool for making important business decisions for the future....... middle of paper...... HR Functions towards external parties. As with any other outsourcing service, there may be quality issues that the outsourcing partner can dilute after the initial contract term. Data privacy also remains the most critical element that must be paid utmost care while outsourcing as this cannot be compromised. It is the duty of the employer to secure the data of the employees of his organization. If there was a violation in this regard, it would lead to a complete breakdown in trust levels, chaos and confusion in the organization with declining motivation levels. Therefore, the intricacies of the agreements and details must be studied in detail and utmost clarity must be provided. present on all questions. Details on matters of critical importance, such as sensitive employee information, should be fully understood before entering into an agreement..