EMPLOYER OF RECORD PAYROLL SERVICES
Employer of record, sometimes known as payrolling, is when PEAK hires your self-recruited personnel onto PEAK’s payroll to work under your direction.
This option is generally superior to paying an employee directly due to 1099 misclassification exposure. PEAK does the proper withholdings that are required in an employee-employer relationship, ensuring that you are in compliance with the Internal Revenue Service.
Elements of Employer of Record:
- You identify the candidate
- PEAK acts as the employer of record; you may convert the employee at any time
- The employee works under your direction
- You have low administrative burden; PEAK handles onboarding, payroll, etc.
- Services are fee-based, no minimum volume requirements
- You pay lower markup relative to contract staffing; volume discounts are common
Consider this option if:
- You have a population of employees that you would have difficulty employing directly
- Geography concerns
- Retirees brought back as consultants
- Intermittent work, such as project-based or field service employees
- You have self-recruited the employee that you want to hire, but you want a temp-to-hire period