How it runs for staffing and recruiting agencies
ACA hours are tracked for variable-hour employees. ADP, Paychex or Gusto runs the payroll after you approve it, and we post the journal by client and state, reconcile the tax impounds, and keep the classification record for every worker paid.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for staffing and recruiting agencies
- Payroll inputs prepared from approved timesheets, with overtime and differentials by state rule
- New work states flagged for registration before the first assignment starts
- ACA hours tracked for variable-hour temps across the measurement period
- Payroll journal posted by client and work state with employer taxes and burden
- W-2 and 1099 classification recorded for every worker paid
The KPI that matters here
Payroll inputs are delivered to your provider at least one business day before every weekly run.
Staffing compliance notes
Multi-state payroll tax
Each state where temps work needs withholding and unemployment registrations, and several states have local income taxes on top. We post payroll by work state, reconcile the liability accounts to the returns your payroll provider files, and flag new work states before the first assignment starts. Your provider files; we keep the books and the reconciliations that prove the filings.
Worker classification
Whether a placed worker is an employee or a contractor depends on control, integration and the applicable federal or state test, and the wrong answer is expensive. We keep W-2 and 1099 spend separate, hold the classification reason with the vendor record, and report 1099 volume monthly so you and your counsel can review it. We give no legal advice on the test itself.
Payroll funding and factoring
Agencies that use a funding partner receive advances on invoices, pay fees, and get reserves released when clients pay. Each of those movements is reconciled to the invoice it relates to and to the bank, so the balance sheet shows the true amount owed to the funder. The funding agreement's reporting requirements are prepared from the reconciled books.
Timesheet-to-invoice controls
The invoice to a client should be provable from approved timesheets, and the payroll should be provable from the same sheets. We keep the three-way match every week, hold client approvals with the invoice, and log corrections with a reason so disputes months later can be settled from the record.
Staffing software we work in
More for staffing and recruiting agencies
Other services for staffing
Frequently asked questions
Do you run temp payroll or prepare it?
We prepare and post; your payroll provider runs it after you approve. The accountant builds the inputs from approved timesheets, applies overtime and differential rules by state, and enters them into ADP, Paychex or Gusto. You approve the run, the provider pays and files, and we post the journal and reconcile the impounds.
How do you handle overtime when temps work in different states?
Each state's overtime rule is applied to the hours worked in that state, since daily overtime in California differs from the federal weekly rule elsewhere. The job order records the work location, so the inputs follow it. Questions about a specific state's rule go to our Compliance Desk for a written answer within two business days.
Can you track ACA hours for variable-hour employees?
Yes. Hours for each temp are accumulated across the measurement period you have set, and a monthly report shows who is approaching the full-time threshold. The report supports your benefits broker and your provider's ACA filings. We track the hours and prepare the data; your broker and provider handle offers of coverage and the forms.
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