This type of outsourcing is considered as part of hr outsourcing though its scope is very much detailed. Aside from that, payroll outsourcing is also a sensitive topic because it deals with money and the salaries of employees. It is very much expected that this kind of outsourcing would experience different challenges.

Here are some of the challenges which could be experienced with Payroll outsourcing:
-changing tax laws
-time/schedule
-compliance issues
-penalties and interest for compliance failure
-misclassification of employees

Though this industry faces many challenges, Forbes magazine revealed that this is going to be a growing industry in the near future. This is because of the growing demand and of course, the convenience that companies experience when outsourcing their payroll. I just hope that this outsourcing would be handled well by outsourcing providers since its very sensitive.