As an owner of a staffing firm, one of your biggest concerns is payroll funding. Because clients may not pay you for up to 60 days past their date of service, and you may experience shortages of cash, it’s important you find other ways to cover your payroll. Fortunately, USA Staffing Services can help with all your payroll funding needs.
Free Up Money for Other Needs
You can use payroll funding to free up money for growing your business. Because you’re not dealing with financial institutions that require much time and work for securing a loan, you’re able to get payroll funding typically within 72 hours. By freeing up money that would otherwise cover payroll, you’ll be able to pay your operational costs of recruiting, sourcing, and hiring contingent workers, as well as your advertising and marketing expenses, so you can continue rapidly expanding your firm. In addition, you’ll have the money needed for emergencies when unplanned financial commitments arise.
Pay Only for Services Needed
You can scale the amount of money needed for payroll according to your business growth. Because payroll is one of your highest expenses, and your revenue fluctuates due to seasonality and trends in the industry, you may need more funding at certain times and less at others. Payroll funding is a perfect solution for your changing payroll needs.
Compensate Employees on Time
Even though you may not get paid by your client companies for four weeks, you have to pay your employees in two weeks for the work they performed. If you don’t have the money for payroll, employees won’t show up for work, and client companies won’t want to work with you. Your business will come to a stop and may eventually go under.
Because not paying your employees is a federal crime, your workers may file state wage claims against you. Also, because you may fall behind on payroll taxes, the IRS may impose penalties against you. In addition, if you do not pay non-exempt employees at least minimum wage and overtime weekly, the U.S. Department of Labor may assess penalties against you. This is all avoidable by partnering with a payroll funding company.