payroll management

The Payroll Challenges │ Payroll – Money and Management Challenges

The Payroll Challenge – not enough money, too much paperwork

Making payroll on time and managing all the administrative tasks that come with it require time and resources that many staffing agencies simply don’t have. Whether a startup or an established business, you feel the cash crunch effects of slow paying customers and business growth.

Managing payroll can be just as challenging as having enough cash to pay salaries. Keeping track of timesheets, sick leave, variable hours, overtime and tax calculations can take up a lot of resources leaving no time for recruiting talent and finding new placements.

 

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Cash Flow Crunch Effect on Payroll and the Business Costs

How many payrolls do you have to cover before getting paid? Simply doing the math, if you do payroll weekly and if you offer your customers 30-day payment terms, you have to keep enough money to cover 4 to 5 payrolls before you get paid for the placements you recruited.

Payroll payments have to be prompt and on a pre-defined schedule even if your customer’s money is slow in getting to you, resulting in a cash flow crunch.
The potential consequences of not meeting payroll on time can be costly, including but not limited to:

  • Accruing penalties and fees for breach of state and federal regulations
  • Losing insurance and benefits coverage due to not being able to pay the premiums on time
  • Workers leaving and inability to attract and recruit top talent

Payroll is regulated by state and Federal laws, and though the frequency and timing may vary from state to state, one thing is certain, payroll must be made on the agreed set schedule and cannot be postponed for any reason.


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Efficient Payroll Management

Let a team of experts manage the time consuming administration of payroll through a state of the art workforce management platform:

  • Timesheet management, compliant with state by state regulations
  • Payroll preparation and calculation including variable hours, overtime, sick leave etc.
  • Processing worker expenses
  • Calculating and withholding state and Federal taxes and providing year-end tax reporting that is IRS compliant
  • Calculating and withholding relevant Medicare and Medicaid charges
  • Accurate and timely payment of salaries to your workforce

Payroll management support is powered by Precision Global Consulting


bridge cash flow gap

Payroll Finance – what is it?

Payroll Finance effectively means that you sell your invoices to a financial services company for an immediate cash advance on them.  In essence, this is factoring with a  few perks, such as payroll management, specifically developed for staffing agencies.  It gives you access to your money before your clients pay.

Factoring is an efficient and commonly used way of financing payroll by staffing businesses. As it’s not a loan, it doesn’t add debt to the balance sheet and it allows you to bridge the cash flow gap between placement and payment.

 

How Payroll Finance works

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Invoice your customers

Send us a copy of the invoice and timesheet

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We pay up to 92% of the value of your invoice

Within 24hrs, allowing you to cover payroll, employee benefits and insurance premiums

collect payment

We collect payment on your behalf

Leaving you to focus on recruiting talent

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You receive the remainder of the invoice value

Minus any agreed fees


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Benefits of Payroll Finance and Payroll Management

  • Access the cash within 24 hours of invoicing
  • The amount you receive grows as your business grows
  • Free up time by outsourcing payroll administrative tasks 
  • Peace of mind that taxes are calculated and covered
  • Focus on recruiting and growing your client base

The factoring facility allowed Seville Staffing to finance its proactive new business strategy and advance to a significant milestone in its business, increasing both its client base and its workforce. Seville Staffing

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Get access to your money before your customers pay the invoices. Getting funds within 24 hours of invoicing means that you have cash ready for payroll or to invest in the marketing of your business, without needing a bank loan.

Call us to get a quote or find out more about how we can help support your staffing business.


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Talk to a member of our team today on (678) 646 7821

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