Employer of Record Services

What are Payrolling and Employer of Record Services?

Here are the critical elements of payrolling: Key Personnel, Inc. serves as the employer of record.  That means that employee and employer liabilities attach to the Key Personnel, Inc. and not you the client.  Key Personnel, Inc. verifies employee work eligibility and is responsible for collecting and remitting payroll taxes and for paying all the employer taxes such as FICA, FUTA, SUTA, Workers’ Compensation and any local payroll taxes.  Key Personnel, Inc. also provides general liability insurances. This service is for the contingent workforce which means we payroll temporary employees, seasonal employees, and project-based employees.  This service not only includes payrolling of your 1099/Independent Contractor employees but verification and certification of 1099/independent contractor classification.

What is the Value to you?

We serve as the Employer of Record so you do not have to keep up with the varied and ever-changing employment rules within each state.

We serve as the Employer of Record so you are not responsible for collecting and remitting payroll taxes for the employees.

We serve as the Employer of Record so you do not have to pay all the employer taxes such as FICA, FUTA, SUTA, Worker’s Compensation and any local taxes.

You eliminate the potential for costly federal/state back taxes and penalties caused by the incorrect classification of w-2 employees versus actual 1099 employee/independent contractor status.

We eliminate your risk of employing those not eligible for employment in the U.S.

You eliminate all of the opportunity cost and risk associated with the entire administration of payroll.

 

REAL WORLD EXAMPLES OF THE BENEFITS OF EMPLOYER OF RECORD SERVICES

  • You’re opening a branch in a state where you’re not licensed to do business. Using an employer of record, you can hire and payroll the individuals working in this new area indefinitely, or just for a few months until you establish yourself in that state.
    • Benefit: you do not have to wait for all the accounts and permits required to do business in that state.
  • You have a six month project where you need to hire several employees to complete it, who will roll off as soon as the project is over.
    • Benefit: your company does not suffer an increase in SUTA costs due to laying off the individuals at the end of the project.
  • You’re a recruiter or a staffing company and you do not want to process and fund payroll for contingent hires.
    • Benefit: eliminate the headaches of processing and funding payroll.
  • You’re an entrepreneur who needs to hire additional staff, but you don’t have the time or expertise to deal with hiring and payroll.
    • Benefit: ready- made payroll and benefits services so you can focus on growing your business.

FOR MORE INFORMATION, PLEASE CONTACT EORSERVICES@KEYPERSONNEL.NET