We can process payments to your contractors/subcontractors, your employees, or both. We can process your entire payments to them including their compensation, or we can handle just the expense reimbursements such as per diems. We can provide their benefits, or you can, or both in some cases. You would need to continue to carry their Worker's Compensation insurance (except for those doing work similar to RMPCP), and to hold any work visas for foreign personnel, if applicable. Our full service would be your best deal in most cases.
If you have any direct contractors which are unincorporated individuals, this is usually the area of most concern to companies (although, ironically, §1706 does not apply in this case). This is the logical starting point and our minimum recommended service. We'll transfer them to our company and process your payments to them, breaking them into appropriate tax categories such as compensation, benefits, and expense reimbursements depending on each individual case. You just pay us for the total cost. They'll also appreciate our services, which save them some administrative paperwork and time as well, enabling them to concentrate better on their work for you. Our services may also produce some tax savings that otherwise would be overlooked, for them and your company both. This is especially true if they travel a lot - some companies mishandle per diems and could get in trouble with the IRS, while other companies don't use per diems at all, which could waste over $50K/year per person. If you have been avoiding the use of direct contractors, our service makes it more convenient and feasible to use them. This especially saves you money if you already know the contractors you want and would otherwise use a staffing firm or "broker" to handle them for you.
For incorporated contractors, or indirect contractors supplied by another firm, we can handle them by providing our same services to their companies, or by arranging to handle their people for them and pay their companies separately that portion they treat as marketing commissions and other items related to each person. This then enables us to handle them for you, and the more people we handle payments to, the more economies of scale we realize. In fact, we can even offer a Vendor Management Service under which all of your contractors are aggregated through us, we handle the payments to all of their people used by your company at least, and the resulting cost savings can help everyone. This also makes it easier if you have standard policies you want all vendors to follow, and we can combine their billing if you wish. There also would not be a conflict of interest here since we're separate from RMPCP.
While it makes the most sense to let us handle payments to your contractors at least, we can also handle your employees the same way we handle individual contractors. You can even choose a different breakdown for employees than contractors. For example, let us handle your entire payments to contractors, but if you prefer, you can continue partially handling your employees so that you can provide them with your own benefits in addition to ours, or you could use us just to handle the per diems and other expense reimbursements as described above. We recommend letting us handle this at least, if your employees travel or incur other expenses on behalf of your company. If you want to split the handling of your employees (or contractors for that matter), the best way is to pay them a small amount directly (like $10/hr.) and let us process the rest. Some companies may be more comfortable doing this so they can continue to show their employees as being on their own direct payroll, especially if they're providing benefits or holding licenses or work visas. Other companies will gladly outsource the whole thing to us, so they can concentrate on their core business.
Although our service is very scaleable, our ideal client at this time would have us initially process a total annual volume (employee payroll, contractors, or whoever they want us to handle) of $300K-$1M including at least 3-5 people earning $50K-$100K/year each. Another way to analyze this would be to count one point for each person earning at least $80K/year, a half point for each person earning $40K-$80K/year, and no points below that; the total points would give us a feasibility index. In all these dollar amounts, exclude any portion you want to keep processing yourself, and exclude any benefits or other deductible expenses you're already handling. As a very rough estimate, at somewhere from 5-10 points, we'd be able to provide our services at no additional cost (except cost of benefits and similar items); below that, we'd have to charge a fee, and above that, we would actually produce cost savings. This is a very rough idea and is not binding; the final analysis would depend on the exact details. A larger firm might have us process their contractors first and then their employees. We plan to expand as needed to handle a total volume up to $100M/year, and by starting with smaller companies first (or small groups within larger companies), we anticipate orderly growth. Our overhead is low and our structure is very dynamic and flexible, so this should be no problem.
As an example of our flexibility, one of our new clients, another computer consulting firm, has arranged to pay us a reduced rate with a guaranteed monthly minimum, once a certain volume is reached.
Call us at 972-557-6583; see the bottom of our contact page for further information.