1. Not enough details are reflected in the payslip so employees keep asking questions
2. Excessive overtime and excessive payroll staff
3. Repetitive trivial activities like timekeeping, Journal entry Preparation, distributing payslips
4. Endless complaints and adjustments
5. Endless inquiries on loan balances and SSS Certifications
6. BIR/SSS/PH/HDMF not being paid on time or not being paid accurately resulting in penalties
7. SSS Loans not being posted properly resulting in employees not being able to get new loans
8. Tedious year-end preparation for BIR Alphalist diskettes and BIR Form 2316
9. Re-encoding of Data for Bank Diskette, SSS Diskette, Accounting Journal entries by Cost Center
10. No budget or no time to attend TAX Seminars
11. High Payroll Staff Turnover
12. No database of past payroll history for the previous years
13. Payroll Software revisions or report revisions are slow and turnover of MIS/IT is also high Manual Payroll is not reflected in the payroll system
14. Last pay computation of resigned employees and their 13th month pay is not computed automatically
15. No report that accounts for changes/variances in the current payroll versus the past period's payroll to make it easy for the company to verify and check the payroll register.
16. No automated facility to handle varying pay rules, multi-company, payroll in foreign currency and payroll for fixed tax non-employees like consultants
17. Non-online, single site timekeeping system. Current timekeeping system uses batch uploading and requires the company to add more timekeeping staff as the number of employees increase and prone to errors.

the cost is too high, extra fee for transportation, delivery, paper and ink and other out of pocket expenses

high turnover of the staff of the payroll outsourced company

re-encoding error

mis-interpretation of instructions

SSS Loan Payments and SSS Premiums are not posted

All Data are provided in printed format and no database or payroll system provided. In most cases, the company have to create their own employee database in excel

All inquiries must be asked by the company to the payroll provider and sometimes the company is billed for time by the payroll provider

Payroll provider does not have a flexible payroll system and they even use excel in most cases

Do not have a Timekeeping system that is integrated with payroll.  Usually recommends third-part timekeeping systems and devices.