You have succeeded in matching up your client with a perfect fit for a temp or contract position. Now you must figure out how to get the employee working and generating an income stream for you. You can do this yourself, but you will likely find yourself spending valuable time and effort handling the many arrangements that must be made. Your time is better spent doing what you do best - placing the best. Partner with an employer-of-record service and back-office provider to free up your most valuable asset – your time! Reduce your stress and turn temp and contract placements into a growing income stream.
The on-boarding process is the first step. Be sure that all the appropriate state, federal and local regulations are complied with, including I-9. You may need to register your business in another state if you have not already done so. Pre-employment drug screens and background checks may need to be done. For your long-term assignments get the employee signed up for your benefits package; offer them affordable healthcare, making sure that you are ACA compliant. Stay current on changing local regulations on PTO (Paid Time Off), maternity leave, sexual harassment training, and other regulations. Avoid the many traps and pitfalls of this process by using your back-office provider.
Once you have the candidate placed you must collect their time, get it approved, and make sure they are paid on time. Payroll responsibilities include withholding taxes, child support payments, state and federal unemployment, matching employer taxes, wage garnishments, and making payroll tax deposits. Be sure to issue the necessary W-2’s after the year’s end. Funding of payroll, of course, is necessary, along with invoicing of your client company. Be sure to carefully monitor the accounts receivable and aging of the invoices. You may need to follow up on missed or skipped invoices and make calls to expedite collections. Partnering with a back-office provider can relieve you of these headaches!
Be sure to provide the needed state and federal unemployment coverage for the employee. Remember that too many claims can jeopardize your in-house unemployment rating and can lead to an increase in your costs. You must provide workers’ comp (WC) for the employee. Make sure your WC policy covers the workers’ comp class code and job description for the placement.
Back-office services are necessary but do not make you money. If they are not handled properly, it can cost you money – fighting the IRS, the Department of Labor, unemployment, and workers’ comp claims. Establish a relationship with a back-office provider that can take care of these very important details.
Has your blood pressure risen yet? Don’t despair. Generate an income stream via your temp and contract placements without all the headaches. Get set up now with a back-office provider to take care of the details. Your focus should be on efficiency so that you can eliminate any time and energy spent on tasks that do not require your direct attention and are not your primary expertise. Do what you do best! Recruit the best! Partner with a back-office provider to REDUCE STRESS.