Debbie Fledderjohann's Blog Posts Tagged 'Back-Office' (18)

What is an Employer of Record?

In a general sense, the Employer of Record is simply the entity that serves as the employer for tax purposes while the employee performs work for a different company.  The Employer of Record, often referred to as the W-2 Employer of Record because they are responsible for issuing W-2s to the employee, shoulders the responsibility for all the traditional employment tasks and liabilities.

When applied to a contract staffing situation, the Employer of…


Added by Debbie Fledderjohann on December 28, 2012 at 9:28am — No Comments

6 Scary Risks of Running Your Own Contract Staffing Back-Office

Forget about ghosts and goblins. When it comes to running your own contract staffing back-office, there are very real risks that can keep any recruiter up at night.

Handling the back-office duties associated with contract placements becomes more complicated each year as employment regulations continue to increase. 

Here are just some of the scary details to fear:

  1. IRS audits — The IRS seems to be cracking down on…

Added by Debbie Fledderjohann on October 23, 2012 at 3:57pm — No Comments

Can a "One-Man Show" Offer Both Direct and Contract Services?

When adding contract staffing services to your existing direct-hire recruiting business, you must first decide if you are going to handle the back-office tasks (payroll, benefits administration, employment paperwork, invoicing, etc.) in-house or if you are going to outsource them.

Many small firms or "one-man shows" choose the latter. After all, it can take the average recruiter one to six months to get set up to handle contract staffing issues in-house.  Not only…


Added by Debbie Fledderjohann on June 25, 2012 at 8:51am — No Comments

How Can I Get Set Up to Make Contract Placements in Other States?

If you have contractors in your home state, it may not be a big deal for you to run your own back-office, particularly if you are already processing payroll and handling taxes, unemployment,  Workers' Compensation, benefits, etc. for your own staff.

But before you can take placements in other states, you're going to have to do a lot of legwork and homework. Every state has different laws and requirements you will have to follow for the contractors you have placed…


Added by Debbie Fledderjohann on April 13, 2012 at 9:00am — No Comments

Is Your Certificate of Insurance (Or Lack Thereof) Holding You Back?

As the demand for contractors continues to increase, clients are getting more picky about the vendors they select to supply them with the help they need. One issue we are seeing companies scrutinize more closely is the Certificate of Insurance.  

A Certificate of Insurance is a document that proves that the vendor is insured to take on the liability associated with employing the contractors.  When you place contract candidates, most major clients will want to…


Added by Debbie Fledderjohann on April 10, 2012 at 8:30am — No Comments

Top 5 Reasons Recruiters Don't Offer Contracting (But Should): Part 4

(This series focuses on the most common reasons we've heard for why recruiters don't want to offer contract staffing.  These reasons are based on common misconceptions about contract staffing and prevent recruiters from reaping the benefits of offering contractors to their clients.)

Reason #4: I don't have time to deal with the hassles of contract staffing

Many recruiters believe that having contractors is going to cost…


Added by Debbie Fledderjohann on February 14, 2012 at 12:31pm — No Comments

Who is the Employer of Record in Contract Staffing Situations?

In a typical contract staffing situation, a company utilizes the services of a worker for a specific amount of time and outsources the employment of that worker to a third party. That third party is often referred to as the Employer of Record and serves as the W-2 employer for that worker.  As the Employer of Record, the third party takes on the legal liability and the responsibility for the following employment…


Added by Debbie Fledderjohann on December 29, 2011 at 10:28am — 2 Comments

Top 10 Reasons To Use A Contract Staffing Back-Office

Contract staffing is a great way to supplement your direct-hire placements with a steady stream of income. But why should you give away part of that income to a contract staffing back-office? Well, there are a number of reasons, and just for fun, we'll count down the top 10 reasons for you, Letterman-style:

10. No more employee questions or issues

9. Stop worrying about missing payroll

8. Stop worrying about whether a client will pay to cover the payroll…


Added by Debbie Fledderjohann on December 19, 2011 at 3:09pm — No Comments

Four Questions to Ask When Selecting Contract Staffing Back-Office

Using a contract staffing back-office is a great way to reap the benefits of placing contractors without the hassle and risk that comes with employing those contractors.  The question is, which contract staffing back-office should you entrust to be Employer of Record for your contractors?

Obviously, you want a back-office that has been in business for a long time and has a good reputation.  But beyond those basics, here are a few…


Added by Debbie Fledderjohann on November 21, 2011 at 2:43pm — 2 Comments

Internships As a Way to Evaluate Future Employees

Companies that simply view interns as cheap labor could be missing out on a great opportunity, according to a Bloomsberg Businessweek "Today's Tip" post by Jim Belosic, Founder of ShortStack.

Instead, Belosic recommends that employers look at internships as an "extended…


Added by Debbie Fledderjohann on August 22, 2011 at 4:24pm — No Comments

Could Contracting Be EASIER Than Direct-Hire?

Many recruiters shy away from contracting because they think it is too complicated. But as we pointed out in our last blog post, when a recruiter uses a contracting back-office, the process is actually very similar to a direct-hire placement. In fact, in many ways, contract…


Added by Debbie Fledderjohann on July 6, 2011 at 4:00pm — No Comments

What You Need to Know to Do Contracting (Hint: It's Only One Thing, and You Already Know It!)

You already know that  you should do contracting. You know it can help you keep income flowing when direct-hire job orders are sparse. And you  know that more and more of  your clients want contractors and are probably going to your competitors to get them.

So why aren't you doing it?  Well, there's a misconception out there that contracting is hard.  Let's face it, it sounds hard. Who is the legal employer of the contractors? What…


Added by Debbie Fledderjohann on July 6, 2011 at 3:57pm — No Comments

How Do I Explain My Contracting Back-Office to Client Companies?

Contracting is a great way to bring in an additional stream of steady, more predictable income. But many recruiters shy away from contracting because they don't want to take on the financial, legal, and administrative burdens that come with employing their contractors.

Luckily there is a way to sidestep those burdens and still reap the rewards of offering contract staffing to your clients - by utilizing a contracting back-office. So that just leaves…


Added by Debbie Fledderjohann on July 6, 2011 at 3:44pm — No Comments

Lawsuits and EEOC Claims Surged in 2010

As if employers didn't have enough trouble in 2010, the number of retaliation and discrimination claims and class action lawsuits increased, according to a recent article by Human Resources Executive Online.

Many employers that had never experienced any type of discrimination complaint in the past were hit for the first time in…


Added by Debbie Fledderjohann on March 2, 2011 at 10:06am — 1 Comment

Clients Can Outsource the "Hidden Costs" of Workers' Comp

When the phrase "Lost Time" is brought up in referrence to Workers' Compensation claims, it usually refers to the money that must be paid to a worker injured on the job to make up for the wages they lose while they are unable to work.  The longer workers are out, the more lost time benefits that must be paid, which results in higher Workers' Comp premiums for your clients at renewal time. But there is another form of "Lost Time" that can be just as costly to your clients.

That is the…


Added by Debbie Fledderjohann on March 2, 2011 at 10:00am — No Comments

How to Help Clients Solve Unique Problems

p>These days, companies are faced with endless unique staffing situations and problems. Direct-hire recruiters who made contract placements in 2010 had clients faced with those types of situations.  Their willingness to offer contracting to those clients resulted in placements they wouldn't have been able to make otherwise.


One of these recruiters was…


Added by Debbie Fledderjohann on February 18, 2011 at 11:00am — No Comments

A Quick Reference to I-9 Inspections and Fines

Since President Obama took office, there has been a marked shift in how immigration enforcement is handled. Where immigration raids aimed at capturing illegal immigrants were more common during the Bush administration, now U.S. Immigration and Customs Enforcement (ICE) is relying on I-9 inspections to find and fine employers who do not follow immigration laws.  As a result, employers are becoming more educated about the inspection process and fines that could be assessed.

As a…


Added by Debbie Fledderjohann on February 2, 2011 at 9:24am — No Comments

Why Small Businesses Like Contracting

When you are looking for new contracting job orders, don't overlook your smaller clients.  

Contracting is not just for large corporations anymore. In fact, according to the American Express Small Business Forum, "Small business owners have dramatically increased their use of contractors," and the money they have spent on contracting over the past nine years has doubled.

Here are some of the main reasons smaller employers hire contractors:

  1. To…

Added by Debbie Fledderjohann on January 25, 2011 at 2:10pm — No Comments


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