Contingent Workforce Solutions
The Synergy Difference
The Managed W-2 Offer from Synergy provides the greatest benefit to companies while minimizing costs versus permanent employees.
Lower staffing costs
Because Synergy is the Employer of Record for contractors, clients are not responsible for the cost of vacations, sick leave, severance, healthcare benefits and additional financial benefits. In addition, the client does not necessarily have to provide equipment and training to perform their duties. All told, the cost savings of a contract employee over a full-time employee can be as much as 30%.
Reduce administrative costs
With Synergy's Managed W-2 Offer, the client does not have to take responsibility for managing contractor enrollment, timesheets, workers compensation claims, unemployment claims, audits, reporting and customer service; therefore, the costs of administration are significantly reduced. Administrative cost savings can range from 4-7% of contractor wages.
Protect against penalties associated with worker misclassification
Several landmark cases and the associated penalties in the millions of dollars have raised awareness to the issue of worker misclassification. This IRS has found numerous situations where contractors should be classified as employees because of the work being performed. A violation would lead to significant costs associated with back taxes, interest and penalties for employers. Synergy's W-2 Offer makes Synergy the legal Employer of Record and significantly reduces the client’s risk of misclassification.
Improve financial performance
Synergy helps companies earn a greater return on their money and improve financial performance by managing the contractor payroll float between payment of the contractors and invoice collections. In addition, Synergy does not charge for background checks, electronic invoicing and fees for converting a contractor to full time employment giving clients greater flexibility and cost savings.
Simplify year end reporting
Year end reconciliation and the associated inquiries from contractors can quickly constrain internal resources. By outsourcing year end reporting and reconciliation to Synergy, companies can focus their energy on full-time employees and avoid the need to hire additional support resources.
