Are you familiar with staffing companies but not sure how you pay them or how they get paid? Staffing services charge a bill rate and cover all costs including the employee pay, unemployment, worker's compensation, FICA, taxes, benefits, etc. The difference between the bill rate and all of these other costs is the margin.
2. Temporary or Temporary to Permanent
Before explaining how we are paid, here’s a quick
explanation of the type of temporary staffing.
Temporary – The associate is OUR employee. We
pay them and pay for all taxes, unemployment,
worker’s compensation, benefits, etc.
Temporary to Permanent – The associate is OUR
employee until YOU decide to bring him/her onto
your payroll (after contract period). While they are
on our payroll, we pay them and pay for all taxes,
unemployment, worker’s compensation, benefits,
etc.
3. We Charge a Bill Rate
While the associate is on our payroll, we
charge a set bill rate per hour. This bill rate
includes everything (see next slide).
If you choose additional testing (drug tests,
DMV checks, criminal background checks,
etc.), we can provide the specific costs for
that.
4. What Is Included in the Bill Rate?
Employee Pay Rate
FICA
Unemployment
Worker’s Compensation
Benefits (including Affordable Care Act
compliant health insurance, 401k, dental,
vision, paid holidays, etc)
And more!
5. Employee submits
hours the weekend
after they work.
Timesheet is sent
to client to approve
hours
Invoice is
generated and
emailed to client
The Timesheet and Invoice Process
Client pays invoice
6. Employee submits
hours the weekend
after they work.
Timesheet is sent
to client to approve
hours
Invoice is
generated and
emailed to client
The Timesheet and Invoice Process
Client pays invoice