Join Date: Apr 2012
Thanked 504 Times in 253 Posts
I have found a way to handle my payroll without breaking my bank and having a massive headache too.
Most payroll companies require you to submit a minimum weekly payroll. This can be very difficult financially when times are slow.
I have dealt with a few different ones in the past and during our slow times it was very stressful to have to send in some sort of payroll even if no money was coming in.
I have a few different people that I use from time to time to do work for me. They cannot be classified as 1099 subs so I have to hire them as employees. And if you have ever done your own payroll you know it is about as fun and exciting as doing your own root canal.
So about a year and a half ago I sat down with a local day labor company and made my pitch to them.
The deal we worked out is simple and profitable for both of us. When I want to "hire" someone I let them know and they take care of getting them a job application and a direct deposit debit card.
Once they are in the system I simply call or email in the hours and, typically, in less than an hour their paycheck is on the debit card and they have their money.
I get a bill once a month for each employee and I write a check. Since we have been working together for a while now they will wait an extra week or two if I am waiting for a check.
My employees are covered with Worker's Compensation insurance and GCL for the staffing company. They also handle all payroll taxes and W2s.
They will also issue a WC insurance certificate to your customers as long as you are using them for payroll.
The reason they are more flexible is simple. They are used to daily work and daily pay. They are also used to people working for a day or two and them not showing up for a while because they fill their labor needs on a first come first serve basis each day. So when you don't send in hours for someone for a few weeks it is simply business as usual for them.
Providing payroll for me is easy money for them because I do all the hiring and staffing. All they have to do is the application and the payroll paperwork for which they have very good software that makes it basically effortless for them.
In exchange I get my payroll and WC insurance taken care of by a professional service and I get a special rate from them because they are doing very little work once they person is in the system as an employee assigned to my company. And since they went paperless for the application each new employee is given a user name and password and logs in an fills it all out via the internet.
The downside it that it costs more than a regular payroll service, so if you have no issues with being able to turn in enough hours each week to keep a payroll service happy them I would recommend going with them.
But if you need the flexibility of having temporary or seasonal workers then it might be a good fit for you. Doing this has allowed me to be able to hire family and friends when I need a little extra help and they need some extra cash or they are out for work for a while without having to worry about how to handle insurance, payroll and taxes.