Contractor Payrolling and Compliance Services
What is contractor payrolling?
A number of companies are enlisting the support of independent contractors for project related work to engage specialized expertise at and lower overhead costs. In many cases (up to 90% in one study), these professional workers are performing the same duties as an employee. In the case of Microsoft, misclassifying their employees cost the company $97 million in penalties, back taxes, interest and legal fees. In order to prevent this situation, several companies are enlisting the support of a third party contractor payrolling provider like Synergy to serve as the employer of record and pay the necessary taxes and workers compensation insurance for these workers.
When would we use contractor payrolling?
Companies who need to fill a vacancy for a temporary period of time, explore a temporary to permanent arrangement, manage a special project, accommodate seasonal fluctuations or unexpected growth or bring back employees after restructuring or retirement are excellent candidates for contractor payrolling.
Who would use contractor payrolling?
Companies with professional positions such as technology workers, engineers, project managers, marketing managers, legal professionals, accounting professionals, etc. that can be sourced internally through the web, referral by name, internal recruiters or even independent recruiters are the best candidates for contractor payrolling services or compliance services.
What markets use contractor payrolling?
While any market can use contractor payrolling, the most common vertical markets include: telecommunications, technology (software, hardware, semiconductors, services), utilities, energy, defense, financial services, media, healthcare.
Why would we use contractor payrolling?
Companies use a third party payrolling company for a number of reasons. Companies are looking to reduce their risks and lower their overall staffing costs. Partners such as managed service providers are looking to bring specialized resources to help their clients manage their overall risks and costs. Finally, contractors are looking to combine the freedom of being independent with the benefits of W-2 employment. Synergy brings the specialized people, process and technology to help companies achieve the goals for all parties including companies, partners and contractors.
