Typically, states charge State Unemployment Insurance of 3% to 6% on the first $7,000 to $10,000 of consultant pay and then the charge stops; some states charge more and some less.
Practically all other services charge a constant payroll burden rate throughout the entire engagement – even when the Unemployment costs stop.
RSS’s independent recruiter clients benefit by receiving the savings when the limits are passed.
100% of the savings go to you when State Unemployment, Federal Unemployment and FICA payrolling limits are reached. Save yourself some serious money... keep thousands more dollars per consultant, per year.
An example:
A consultant working an entire calendar year earning $60 per hour:
· Federal and State Unemployment Insurance cost savings (cash in your pocket), would approximate $4,000 to $6,000, depending on state.
· Federal OASDI (Social Security) savings would approximate $2,300