How does payrolling (or Employer of Record) work?
When payrolling occurs as part of a workforce management strategy, a company’s external (contingent/contract) workers are placed onto the payroll of a trusted business partner to handle their compensation, benefits and onboarding. The biggest difference between this version of payrolling and the more frequently referenced one is the employer of record component. Here’s how this strategic version of payrolling works…
As a company, you know who you want working for your business and have already identified them as key assets for specific projects or roles. These individuals could be freelancers, interns, retirees or employees who have worked with your company previously. Instead of your business hiring them directly, they will work through Doherty Staffing as contingent employees. As the employer of record, we provide excellent employer-related services to these workers, while they take project direction and instructions from you, providing their valuable expertise for your business. Rather than being employed directly by your company, they are compensated through Doherty, hence the term “payrolling”.
Top Benefits of Partnering with a Payrolling Services Provider:
1. Reduce Employment Expense and Risk | The investment of bringing on a full-time employee directly onto your employee roster can add up quickly. Total employment burden often adds 18-20 percent to a base annual salary. This burden includes Social Security, Medicare, Workers Compensation insurance, state and federal unemployment insurance, , 401(k) contributions, other benefits, and more. If your business would benefit from offsetting employment costs while utilizing specialized talent, payrolling is an excellent option to explore.
2. Enhance Onboarding Momentum | Special projects and product improvements are critical to the growth of your business. In many instances, they are extremely time sensitive due to their critical nature. Spending excessive time going through the administrative lag of onboarding a direct employee can become time expensive. Engaging a payrolling services partner reduces the amount of lost time by handling the administrative burden of onboarding/offboarding processes. This allows the identified talent to hit the ground running, increasing project momentum.
3. Amplify Daily Efficiencies | Human Resources Managers are experts in their field, yet they traditionally take on many day-to-day tasks, especially as companies strive for leaner and more resourceful teams. Adding responsibilities to their rigorous workload is overburdening and could lead to strategic projects being abandoned and/or delayed in their completion. Utilizing their valuable time to onboard and offboard employees who are employed on a per project or transitionary basis may not be the best use of their critical resources. Partnering with a payrolling services provider eliminates the hassle of tedious administrative tasks for specialized external workers.
At Doherty, we’ve developed a customized, scalable payrolling services program to allow our clients the competitive advantage of working with pre-identified talent, while our employment experts take on the administrative side of the work relationship. Doherty handles all the employment paperwork, onboarding, offboarding, and payroll processing duties. Your company enjoys a consistent, compliant process for external workers, with less headaches and excellent customer service.
Payrolling is just one of the solutions we provide businesses to manage all types of external workers delivering value, compliance and transparency into your external workforce. Developing an integrated payrolling services program that allows talent to perform their specialized work and get paid accurately & on-time, while maintaining compliance is more complex than ever. Having an efficient payrolling services program helps ensure processes are followed, risk is minimized, and strategic projects and initiatives are completed by the talent your business wants and needs.
Why Partner with Doherty?
- Woman Owned | Our company is a certified women-owned business (WBE) and through the Women’s Business Enterprise National Council (WBENC) which means your company’s investment with us counts toward diversity spend goals.
- Employee Experience | From onboarding to offboarding and every stage in between, our payrolling services team creates a great experience that helps employees feel they are a valuable part of your team, which positively impacts business clients too.
- Change Management | Developing a payrolling services program can be a big change for any company, but it doesn’t have to be a big disruption. Our payrolling services team helps business clients transition consultants to a program through internal buy-in and outstanding customer service.
- Service Scalability | Rest assured that as your company’s payrolling services needs grow or change, we are structured to adapt and flex with you. Payrolling is a key part of our flexible and customizable employment solutions offering to help manage external workforces.