Is the Cost of Using a Staffing Agency too expensive?

Costs to Consider:

A $10.00 worker really costs your company between $12.50 – $14.00 an hour.

The average cost to an employer of an employee is 1.25% – 1.40% times the salary of the employee. 

• Employer share of FICA (7.65% on compensation up to the annual wage base, which is $132,900 in 2019, plus 1.45% on compensation over the annual wage base).
  
  
• Federal unemployment tax (FUTA) of $42 per employee. The FUTA tax rate is 6%, but most employers can take a FUTA credit of 5.4%, resulting in a mere 0.6%.
  
  
• State unemployment tax, which varies with your state and your claims experience (the more claims made by former employees for unemployment benefits, the higher your state unemployment tax rate will be).
  
  

You and your employees need insurance coverage

• We provide Workers’ compensation and General Liability insurance
  
  
• AAA rated insurance with a built in Waver of subrogation
  
  
• We list you as additional insured.
  
  

Final thought on the cost aspect would be the recruiting aspect.

• The cost of advertising and following up with good and bad candidates.
  
  
• Cost of background checks, drug test, and E-verifying when applicable.
  
  
• We are inexpensive when you consider all the mandatory costs of an employee.
  
  
• Get rid of all the hassles.
  
  
• Efficiency – Combining Payroll and Recruiting frees up to 30 days of in-house payroll cost.
  
  
• Experience – we can tell immediately if they are going to be a good fit for the position.