As a recruiter, one of your top priorities is business growth. The more you expand, the greater your bottom line. With business expansion comes additional administrative responsibilities. These include payroll administration, taxes, workers’ compensation claims, and more. Because you need time to focus on your core activities, and you also need employment issues handled, it’s in your best interest to hire a trusted third party to handle your back-office administration.
Learn how outsourcing employer of record frees up time to build your recruiting firm.
Defining an Employer of Record
An employer of record is a company that serves as the employer for tax purposes while the employee performs work at a different company. An employer of record is legally responsible for paying employees and handling related taxes, benefits, insurance, and other responsibilities. Partnering with an employer of record creates a layer of protection for your recruiting firm. You mitigate risks such as workers’ compensation and claim management issues that typically increase as you grow.
Outsourcing Your Back Office
An employer of record typically handles back-office tasks. These may include employee onboarding, time entry, payroll processing, benefits administration, HR compliance, and workers’ compensation for a contingent workforce. When you fill a job order, the employer of record takes over these administrative responsibilities for you.
An employer of record ensures your recruiting firm maintains all areas of compliance. It covers workers’ compensation in the state where your placements work while withholding state taxes in the state in which they live. An employer of record stays current with changing state and federal employment laws to ensure your firm aligns with regulations. It offers benefits such as health care compliant with the Affordable Care Act. An employer of record pays employees on time while withholding state and federal taxes and issues W-2s at year end.
Saving Time and Money
Partnering with an employer of record saves your recruiting firm time and money. You free up time by not having to deal with payroll and HR issues yourself. Simply pay a set rate for the hours your placements work and let the employer of record handle the rest. As you expand into the temporary and contract worker market, you don’t have to add internal staff to handle the administrative details. Because an employer of record handles unemployment claims, your in-house unemployment rating remains unaffected. You’re able to expand into other states that you aren’t set up to do business in.
Outsource Employer of Record to USA Staffing Services
Outsource employer of record to USA Staffing Services. Let us handle those administrative tasks so you and your team can focus on talking to the people who want to work for you! Contact us today!