employee leasing

[ASK_EDDIE]

I am currently using an employee leasing company for payroll. The company I'm
using takes care of everything including 1 million in workers comp , and unemployment insurance. All payroll issues matching ss. The entire amount is deductable. the cost is 28% of the total payroll. We are a small shop 4-8 employees. THe secretary is too busy to take on anymore and dont think she could do it right if she had the time. I'm just wanting to hear opinions.

thanks

 

[cadpoint]

I walked away and left money unpaid from a man locally that used a national service to do the same as you said!

My thoughts were if your let that much business in the hands of others than, One doesn't have a grasp or understand the business nature of things.

JMO

 

[satcom]

I am currently using an employee leasing company for payroll. The company I'm
using takes care of everything including 1 million in workers comp , and unemployment insurance. All payroll issues matching ss. The entire amount is deductable. the cost is 28% of the total payroll. We are a small shop 4-8 employees. THe secretary is too busy to take on anymore and dont think she could do it right if she had the time. I'm just wanting to hear opinions.

thanks

Good your allowed to use leased employees in your state, here in New Jersey it is illegal for licensed electrical contractors to use leased employees, that do electrical work, we can do it with office help, but all electricians must be on our payroll and our direct supervision.

 

[Cavie]

Leasing is best for some people. Not everyone is cut out to be a bookkeeper. Small companys use them. Large companys use them. You have 100 percent control and supervision over them. It is not a problem. I used one off and on for ten years.

 

[Buck Parrish]

Good your allowed to use leased employees in your state, here in New Jersey it is illegal for licensed electrical contractors to use leased employees, that do electrical work, we can do it with office help, but all electricians must be on our payroll and our direct supervision.

In NC our employees have to be w-2 employees . The one exception is, if thier leased employees.
This is relatively new here in NC. It seem to much work was being subbed out and not looked after as required.

 

[petersonra]

28% sounds like a heck of a deal to me. It is doubtful you could do it yourself for that. Better to be doing things you are actually good at and qualified to do than spending time on HR, payroll, insurance, etc, and never doing it very well.

 

[tx2step]

What's covered in the 28%?

What's covered in the 28%?

I'm not clear on what's included in the 28%...can you list everything?

Is the matching employer portion of the social security tax included in it?

 

[Sierrasparky]

Here in Ca all Electrical workers working for Electricians need to be certified, so for me as long as you are supervising them I have no problems with that route. If you expect loyalty and such from them you could have an issue.

 

[lefty]

Oklahoma

Oklahoma

Here in Oklahoma you cannot lease employees, unless they are from an electrical contractor. All the leasing companies simply put a licensed electrical contractor on their staff to facilitate the leasing of the employees.

 

[ASK_EDDIE]

re: employee leasing

One advantage is i know what the payroll aspect of my overhead is to bid jobs.
There seems to be some confusion here on the term employee leasing, I'm not using a temp agency or a payroll service. It is staff leasing, our paychecks have the name of the company leasing company " the davis company" for example.
i have total control over hiring , firing , drug test , background checks dmv checks.
I have no resposibility for unemployment claims or workmans comp claims,my rates stay the same.

They take care of all payroll issues including matching social security , 1 million in workers comp, they take care unemployment insurance , deducting for child support and do direct deposit fo the pay checks.

 

[ksmith846]

I have used a staff leasing/payroll company for the past 6 years.

I do not have to shop for WC Insurance, process payroll and associated taxes etc.

Make sure that you hit them up every year or so and get them to revisit your percentages. Your WC percentage as well as what you pay them for their fee can be lowered the longer you stay with them. They will not do this without some persuasion, but they will negotiate if you tell them their service has been great, but you are thinking of doing the payroll yourself and may no longer need their services.

Our 28% is now less than 22% total per labor dollar inclusive of all associated costs......other than Health Insurance.