Engaging a Employee Leasing company: Reducing Employer Related Costs

The Indirect Costs of having Employees

How much does your company spend on employment administration?

According to a study commissioned by the US Small Business Administration in 1995, the average cost per employee per year for a firm with fewer than 500 employees is $5,000. This cost includes the impact of all Federal regulatory paperwork and tax requirements placed on a company. While these costs may be "hidden" in terms of the time your staff spends managing paperwork, make no mistake, they are real. Let's look at the major cost components:

Labor Accounting and Reporting Costs

• Building and running labor costs reports including departmental or job costing labor reports
• Journal Entries for labor costs, tax withholding, etc.
• Federal, State and Local Tax Filings
• Regulatory Agency Reporting and Filings

Human Resources Administration Costs

• I-9 Verification
• Background Checks (optional)
• Pre-Employment Testing (optional)
• Recruiting, Advertising, Resume Screening, Interviewing (optional)
• Employee Handbooks
• Performance Appraisals
• Rewards and Recognition Programs (optional)
• Position Descriptions
• Drug-Testing (optional)
• Training (Employee and Managerial)

Payroll Administration Costs

• Employee time collection and reporting
• Payroll errors handling
• Third party inquiries administration for employment confirmations
• Employee Garnishments, Child Support and Tax Levies
• W-4 administration
• W-2 Printing and Reporting

Benefits Administration Costs

• Plan Acquisition Costs
• Plan Enrollment Reporting and Administration
• Plan Premium Remittance to Insurance Carriers
• Employee Plan Enrollment and Termination Reconciliation with insurance carriers
• Annual Plan Enrollment, ERISA and HIPPA Compliance
• Claims Management

Each of these cost categories above applies to each type of insurance your company wants to offer including:

• Medical Plans
• Dental Plans
• Long Term Disability
• Short Term Disability
• Accidental Death & Dismemberment
• Life Insurance
• Vision Plan
• 401(k)
• IRA
• Employee Assistance Programs
• Flexible Spending Accounts

StaffMarket Services, LLC
431 12th Street West, Suite 202
Bradenton, Florida 34205 (get map)
Phone: 941-750-9450 - Fax: 877-471-5608
Office hours are 9:00am to 5:00pm EST
Send e-mail to: StaffMarket Information