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How to Manage Payroll for a Temporary Workforce

Posted by Stacey Jones

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Jun 19, 2015 9:00:00 AM

How_to_Manage_Payroll_for_a_Temporary_WorkforcePayroll needs can become complex and time consuming when you’re dealing with a temporary workforce. It’s not easy to manage payroll when you’re constantly on-boarding new temp workers, especially when they don’t stay with your staffing company long-term. It’s hard to keep track of everyone’s comings and goings, hours, sick days, and deductions when you’re constantly dealing with different workers at just about every pay period.

In the staffing industry, payroll isn’t as simple to manage as it is in many other industries. When you’re dealing with a temporary workforce, there are a lot more factors to consider.

Here are a few options you can choose from in order to manage payroll for your staffing company. But beware, not all options are equal.

Manage Payroll on Your Own

If you have a relatively small agency, you may think that it’s easier and more cost effective to simply handle the payroll duties on your own. However, if you’ve already tried out this option, you know that it’s not as easy as you might have expected.

There are a lot of tax regulations to keep track of, there’s a lot of paperwork to file, and there are a lot of factors to consider, like whether or not your temporary workers are considered contractors or employers, how much EI and CPP contributions to deduct, and more. Soon, your “simple” task of processing payroll starts to take over your work day. You’re spending most of your time on it, and the rest of your responsibilities start to be neglected, which is never good for business.

Hire a Payroll Clerk

Therefore, you realize that you shouldn’t try to manage payroll on your own—it just doesn’t make sense, given the time commitment and the complexity of the work. So instead, you consider hiring a payroll clerk. 

Though this option can take a considerable amount of work off your plate, you’re going to have to pay this employee a salary, benefits, and sick and vacation days simply for going into the office, even if there isn’t work to do. Plus, you’ll need to pay for training, equipment, and supplies. And while a payroll clerk may be well versed in the legalities surrounding payroll than you are, he may not understand the unique challenges that staffing agencies with a temporary workforce face, and with all of the expenses, it may not be the ideal choice financially, either.

Outsource Payroll

Your best option, both in terms of cost and efficiency is to outsource the responsibility to a payroll service provider that has the expertise and experience to properly manage payroll for your temporary workforce. When you outsource to a provider that specializes in working with agencies in the staffing industry, you’ll have peace of mind knowing that they understand the complexities, challenges, and hurdles of processing payroll for a temporary workforce.

The experts on staff will work quickly and accurately. They’ll handle the payments, the pay stubs, the deductions, and the remittances, all while ensuring that you’re always in compliance. When you go with this option, you can actually save money, because you’ll be saving time, saving from the expense of hiring a clerk, and saving your company from the bad reputation, fines, and penalties that come with managing payroll incorrectly.

You Have a Responsibility

Don’t let your staffing agency suffer because of improperly managed payroll. You have a responsibility to pay your temporary workforce on time and accurately. If you don’t think you can do it on your own properly, and you don’t want the expense of a payroll clerk, outsourcing is your best option.

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Topics: Payroll Administration Temp Workforce

Stacey Jones

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