What is Included in My Temporary Services Bill Rate?

To fully appreciate the value being offered by dmDickason Temporary Service, it is important to understand an Employer’s current employment related costs. Every company with employees has financial obligations for certain employer related payroll taxes and employer administrative responsibilities such as:

  • The Employees wages - For the most part, you dictate how much you want to pay the temporary employee. Your dmDickason Staffing Specialist can provide advice on the competitive “going rate” for most employees. The following costs / taxes are determined by the base wage you want to pay the temporary employee

  • Statutory “Pass-through” financial obligations of being an Employer: dmDickason’s bill rate for services will include a price that includes all normal employer-related costs including the employer’s required contribution to FICA, Medicare and FUTA. These costs are an employer’s obligations when you hire any employee whether you engage dmDickason or not.

  • Federal Insurance Contributions Act (FICA): As an Employer, you may be required to withhold Social Security taxes from the employee. It is also your obligation to match this amount as the Employer’s contribution. FICA amounts are billed (to the client) at 6.2% of wages, per employee. Your pass-through amount will be for only the actual amount of the employer’s requirement of FICA. This amount will be collected from you and remitted to the government by dmDickason.

  • Medicare: As with FICA, Medicare is a pass-through employer obligation, billed at 1.45% to both the employee and employer. Just like FICA, Medicare will be collected from the employer and remitted to the government by dmDickason.

  • Federal Unemployment Tax (FUTA): Your bill rate will also include a pass-through charge for your company’s obligation for federal unemployment taxes. This amount represents .008 or .8%. dmDickason is responsible for collecting and depositing the FUTA payments and filing the governments 940 on all temporary employees utilized by your company.

  • State Unemployment Tax (SUTA): In every state (including Texas) employers are required to pay state unemployment taxes. Tax amounts are calculated for each employee based on the actual wages paid to the employee and the past employment rate of the temporary service. In a temporary service / client relationship, SUTA is calculated for all temporary employees utilized by your company and paid by dmDickason since we are the employer of record with the state.

  • Workers’ Compensation Insurance: dmDickason’s quote will include Workers’ Compensation coverage for all dmDickason temporary field employees. dmDickason’s bill rate will reflect workers’ compensation rates based on the risk associated with the actual type of work being performed. Coverage (rates) for high risk work, like construction, is obviously more expensive than coverage for office workers, since these jobs are more prone to accidents.

  • dmDickason’s Administrative Services: Administrative fees are charged by dmDickason to cover the cost of the administrative services we provide your company. These fees include payroll processing, unemployment claims handling, workers’ compensation claims administration, unemployment claims handling, benefits administration.

  • Recruiting, screening, interviewing, training, hiring, supervision and retention of quality temporary employees. (plus 100% of the liability and responsibility associated with employing staff). In order to build an “inventory” of qualified temporary employees so that we can have them readily available, on demand, for assignments at various client worksites, a great deal of cost is incurred by our company to hire and train a sufficient team (we have 12-15 local Staffing Specialists in three branch offices) who, 5 days a week, 52 weeks per year, recruit, interview, test, hire, train, and supervise 4000-6000 annual temporary and temp-to-hire field employees. In addition, we must provide our staff employees with competitive benefits, vacation pay, state-of-the-art computer system, legal support and more. Our company is in the “business of employment” so you don’t have to be. For more information on the full-service staffing support we provide your company, please click on How can dmDickason Personnel Services help my Company?

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