Running a small or medium sized business is a complex undertaking which requires that key company staff manage numerous business functions in order to succeed. Businesses prosper by executing on the competitive advantages unique to the company. Indeed, the most important activities often revolve around goals like winning new customers, developing brand recognition, recruiting and training the best employees, and ensuring that customers experience high quality goods and services. The myriad of tasks required to properly prepare payroll checks and W2s, administer benefits, pay taxes and file payroll tax forms, while critical to a business, are rarely the most important areas for the leadership of a company to devote attention. Outsourcing frees owners and other key employees to focus on the activities that will ultimately determine the success of the company.

Numerous studies have demonstrated that outsourcing is more cost effective than executing in-house. KPMG, for example, found that outsourcing costs are 25-40% less than in-house costs. Companies that outsource do not have to deploy, learn, and maintain hardware and software in order to carry out payroll processing each period. Frequently the most expensive aspect of processing payroll in-house is the focus and effort required of key employees to keep necessary processes and systems compliant and up to date with ever changing legislative requirements of numerous government agencies.

Firms that outsource also benefit from the outsourcing company’s access to more comprehensive and innovative systems than those which are available for deployment in-house. Another key benefit of outsourcing is that the outsourcing firm is responsible for accurate compliance with government requirements. Outsourcing firms frequently reimburse customers if penalties are incurred due to errors made by the outsourcing firm.

Mosaic is always available to discuss various outsourcing options tailored to your company and specific requirements.