How we can do this

To some, our service might sound too good to be true, for several reasons:

• Unlike an umbrella, we can also handle payments to your employees
• Unlike a PEO (employee leasing firm), we can also handle payments to contractors
• We can handle not only pay but also expense reimbursements such as per diems
• We can often choose a more efficient tax treatment than your situation allows you to
• Our service can handle most any company, industry, and occupation
• Our service can cost little or nothing, or even save you money

As to how we can legitimately allow for each worker the kinds of tax deductions that usually are only appropriate for businesses, these deductions are the kind that your contractors could write off themselves and those that your company could write off for your employees. Thus, it is just as legitimate for us to write off these same deductions as we pay your people. But we don't have to refrain from using some deductions for some of your people just because they don't apply to all of your people. The key is our flexibility, which allows us to optimize the tax categories of the payments to fit the needs of your company and your personnel.

Generally speaking, as far as how you pay your people and how these payments are broken down for tax purposes, your company has to treat all your employees pretty much the same, and all your contractors pretty much the same, and you must treat your contractors differently from your employees. Sure, there may be a few large groups of each, and maybe a few exceptions, but mostly everyone in a group needs to be treated the same way.

Because we're a Tax-Responsible Payment Processing Firm and because of our flexible design, we can tailor the breakdown of tax categories for each situation and for each person, avoiding unnecessary waste. Also, the IRS is familiar with TRPPF's such as PEO's at least, and in fact may even prefer that companies use TRPPF's because they know that the taxes will be handled correctly by people who specialize in that area.

Our cost efficiency comes from the various tax advantages available to us, our specialization in this area, our low overhead, and our ability to combine the personnel of many companies into one larger group for economies of scale.