Payrolling Solutions

Key Benefits

• Avoid costly Misclassification of Worker

• Scale Teams As Needed

• Higher Worker Satisfaction

• Reduce Administrative Costs

• Competitive & Predictable Pricing 

• Pricing Transparency 

• Maintain Labor Law Compliance

What is Payrolling? Payrolling is a service that allows employers to outsource the administrative tasks associated with employing workers. With payrolling, the employer transfers the responsibility of paying their workers and managing related administrative tasks to a third-party provider. The provider assumes the role of employer of record, while the workers remain under the supervision of the original employer.

Benefits of Payrolling

 Reduced Administrative Burdens:

Payrolling can help reduce the administrative burdens associated with employing workers. The third-party provider assumes responsibility for payroll processing, tax withholding, benefits administration, and other administrative tasks, freeing up time and resources for the original employer.

Compliance with Labor Laws and Regulations:

Payrolling providers typically have expertise in labor laws and regulations, which can help ensure compliance. They stay up-to-date on changes to labor laws and regulations and can help ensure that the employer and workers remain in compliance.

Greater Flexibility:

Payrolling can also provide greater flexibility to employers. They can hire workers on a temporary or project basis without the need to worry about payroll administration, and they can quickly scale their workforce up or down as needed.

 Mitigation of Legal and Financial Risks:

Payrolling can also help mitigate legal and financial risks. The third-party provider assumes responsibility for payroll taxes, workers' compensation, and other legal and financial liabilities, reducing the risk for the original employer.

 Improved Worker Experience:

Payrolling can improve the worker experience. The third-party provider assumes responsibility for benefits administration, which can help ensure that workers receive the benefits they are entitled to. They can also provide workers with access to resources such as HR support, time off management, and employee self-service tools.

 Avoid Misclassification of Workers

Are you still hiring 1099 contract workers? You may want to review your strategy and consider Payrolling as an option. In many states, 1099 contract workers may actually be considered employees and if misclassified, could lead to costly fines and penalties. The misclassification of workers has become an increasingly significant issue in many industries, particularly in the gig economy. Many states continue to adopt these policy changes and there is interest at the Federal level for these policies to be national. Misclassification occurs when employers classify workers as independent contractors rather than employees, depriving them of important legal protections and benefits. This can lead to significant financial losses for workers and can result in legal disputes.

Understanding the proper classification of a worker can be complex. In order to simplify understand, states have been adopting the ABC test which states:

A worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:

• The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;

• The worker performs work that is outside the usual course of the hiring entity’s business; and

• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

By leveraging our Payrolling Solution, you can still realize the benefits of utilizing a contract workforce. Our service aims to help employers correctly classify their workers, avoid misclassification issues, and creating a good working environment for the worker.