The Payroll Benefits of Using Temporary Staffing

You may have heard of companies using temporary employees to supplement their staff, but how can’t it help you? Temporary help can be the solution you have been looking for, but first you need to understand the benefit to yourself and your company. Today we will look at payroll benefits, and how this directly affects your bottom line.

Worker’s Comp That dreaded component of hiring someone. KILL ME NOW! Depending on your type of business, and the amount of accidents you have had, your workers comp could be twice that of a staffing agency. Staffing agencies usually have a good comp policy that is kept to a pretty low mod rating. When you utilize a temporary staffing agency, the employees you bring on are automatically covered by their worker’s comp policy. You could still be held accountable for a negligence suit unless you have a waiver of subjugation in your contract, but their WC takes the brunt of the hits. This is a huge savior to most companies, especially those with a high risk products (ie. demo, asbestos, recycling, etc), as an unfortunate accident on your site does not raise your worker’s compensation modifier.

Unemployment Another huge downside to hiring employees is the prospect of unemployment, and the paperwork an unemployment claim causes. As a temporary employee is not an employee of your company, the unemployment claim does not go against your insurance. Any and all unemployment claims are brought against the temporary staffing agency, and their insurance is responsible for covering the claims. Also, the sheer amount of paperwork caused by unemployment is a good enough reason to switch to temps. Your HR department does not need to be bogged down with unemployment claims from someone who did not last three weeks. Let a staffing agency handle the day-to-day of your workforce.

ACA Ah yes, the bane of my existence. The ACA has become a black hole of paperwork for so many companies. Between the sign-up, the PCORI reporting, 1094’s, and the sheer amount of changes yearly, temporary staffing agencies are required to offer insurance to their temporary employees – NO MATTER HOW LONG THEY ARE WORKING AT YOUR COMPANY! That’s right! Staffing agencies are responsible for making sure the employees are covered AND do all of the paperwork to show they are following the rules. The best part? This is covered in the cost that you currently pay the agency! The temporary employee is the employee of the staffing agency in every legal way. This frees up your internal staff’s time to focus on actual employees (not seasonal, or employees you wanted to test out).

Child Support Surprisingly time consuming, child support recording, payments, and questions can make your HR department scream. First, the paperwork comes in, then it has to be documented and marked to come out of the check, then your HR department has to have a login for that state’s website and post the payment online. This can take up so much of your staff’s valuable time. This is another reason staffing agencies are so often utilized. The employee is their’s, therefore, child support is their issue also. Let them handle the paperwork and time consuming nature of child support, especially for an employee that you might only need for one month.

Staffing agencies can become the HR department of your company, especially for season employees, and those positions you have a high turnover. The entire reason staffing agencies exist is to give companies employees they may only need for a day. Use the tools that are at your disposal and quit taking up the valuable time of your internal staff.