What is not an advantage of a service bureau?

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The incorrect answer is identified as control over security. While service bureaus offer many advantages, complete control over security is generally not one of them. When companies outsource their payroll processing to a service bureau, they entrust sensitive employee data to an external party. This means that the company must rely on the service bureau to implement and maintain adequate security measures to protect that data.

In contrast, having control over security typically lies with in-house payroll processing, where the organization directly manages access, data protection measures, and compliance with regulations related to data security. While reputable service bureaus invest heavily in security and often have robust systems in place, there is an inherent loss of direct oversight and control when data is handled by an outside vendor.

The other options represent genuine advantages of using a service bureau. For instance, the ability to add new services allows companies to enhance their payroll offerings without needing to invest in additional internal resources. Fewer research problems arise since service bureaus often have specialized expertise and resources to navigate complex payroll regulations and resolve issues quickly. Lastly, low processing costs are a key benefit as service bureaus can achieve economies of scale, reducing the cost per pay period for their clients.

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