How You Pay Your Workers – And How You Can Save

Companies are trying to understand the most efficient ways to engage contingent/temporary workers for their organization. 

Are you looking at possible ways to save money when it comes to your contingent labor? Have you been working with a staffing company to pay your direct-sourced candidates? (Direct sourcing of candidates means an organization recruits their workforce directly rather than utilizing a recruitment agency.) Differing approaches to outsourcing carry different consequences, costs, and benefits for your business. This can determine or influence the type of payroll plan you select. 

When was the last time you compared your staffing company’s payroll services rates to an Employer of Record (EOR) company’s rates? A new approach to leveraging the contingent workforce may be on your horizon, and with significant cost savings.

While most large organizations use an “In-House”, Pay Direct method (meaning they add the employee to their payroll and are the legal employer), smaller companies may not have the resources to manage employee matters such as employee relations issues, keeping up with compliance laws, and other responsibilities of an employer. But, big or small, if your company has employees, you need workforce solutions.

Smaller and medium-size organizations may benefit from outsourcing to an Employer of Record (EOR) or Professional Employment Organization (PEO) service. EOR is an Employer of Record business model where you engage a percentage of your workers on the EOR’s payroll. An EOR serves as the legal employer for tax purposes while an employee performs work for the client. A PEO is a Professional Employer Organization business model, where all your employees (Full-time and Contingent Employees) are employed by the PEO. 

If you require the help of temporary workers to accomplish day-to-day tasks, you should probably be outsourcing your back-office Human Resources and Payroll functions to an Employer of Record service. An HRO is Human Resources Outsourcing, an independent, third-party provider of common HR services. It’s a “one stop shop” that allows businesses to outsource most of the time-consuming and costly non-productive functions associated with employee administration, such as payroll and benefits administration. An HRO firm’s services range from basic HR services to more detailed and strategic HR services.

ClearPath is a leading HRO and Workforce Solutions provider that delivers EOR solutions, with a focus on the contingent labor market. We have been providing contractor management, payroll, and compliance solutions for over 26 years, and we cover the entire USA and Canada.

We know keeping up with your employees’ payroll is time-consuming and complicated. 

When you choose ClearPath as your Employer of Record, we can:

  • manage all paperwork including employment agreements, worker eligibility, and statutory enrollment documents;
  • incorporate Client policies (background checks, drug screenings, Non-Disclosure Agreements) into the onboarding process;
  • process payroll, including all applicable tax withholdings;
  • administer Employee Benefits, including an Affordable Care Act (ACA)-complaint program;
  • cover all employees with our statutory and commercial insurances, including Workers’ Compensation, Commercial Liability, Error & Omissions; 
  • provide online self-serve tracking and reporting. Get real-time visibility and information access. and reduce costly hours spent on timesheet submission and approval.

Want to find out how much you can save? Use our Payroll Savings Calculator

ClearPath’s Employer of Record (EOR) clients save an average of 15–35% on their payroll costs versus using a traditional staffing firm. By entering answers to a few questions (the number of contractors, the average length of assignment, and the pay rate per hour), our calculator will show you what your potential savings would be. Savings are presented for the time period of the average length of assignment based on input. (The calculation also assumes a clerical/professional worker’s compensation classification code. Actual results may be more or less, depending on the actual worker’s compensation classification of the position and the current rate you are paying for the services.) 

Download our easy-to-use comparison guidePay Direct (with a payroll service or HR Partner) or Engage ClearPath. This guide will show you the tasks your organization has to perform when engaging a new worker as compared to engaging the worker through ClearPath.

What makes ClearPath different?

The ClearPath model brings unique value because you get the advantages of flexibility in the services you want to outsource and the benefit of the Employer of Record. Your business retains control over all business-critical decisions and growth activities, while we manage time-consuming and risky processes such as workers’ compensation, benefits administration, compliance, and tax filing. Get the benefits of hiring contingent workers without potential risks. As your Employer of Record, we employ your W-2 contingent workers, take over Human Resources and Payroll functions, and ensure compliance with all labor laws and regulations.

  • Save Time – Free up your time for managing your core business and not your contingent workforce.
  • Save Money – ClearPath clients save, on average, 15% – 35% on their payroll costs by switching from a traditional staffing firm. 
  • Quickly ramp up staff – By handling all the details for you, we shorten the time it takes to get your new workers onboard and productive.
  • Stay compliant with legislation – Local, state, and federal laws can change without warning – we stay up-to-date on legislation so you don’t have to.

If you want to turn over the headache of handling the payroll for your contingent workers, consider ClearPath as your Employer of Record service. We can take care of your employees and all the complexities of compliance, allowing you to focus on your business. ClearPath can help you design a solution pertaining to your contingent workers. We can help relieve this burden by outsourcing your back-office Human Resources and Payroll functions to our Employer of Record service. 

Contact us to learn more about how our expert personalized service can let you get back to focusing on your business goals. Work with a leader in the industry for outsourced Human Resources and Payroll functions associated with W-2 and 1099 contingent workers. Let ClearPath be the path to your peace of mind.