Is the Cost of Using a Staffing Agency too expensive?

Costs to Consider:

A $10.00 worker really costs your company between $12.50 – $14.00 an hour.

The average cost to an employer of an employee is 1.25% – 1.40% times the salary of the employee. 

  • Employer share of FICA (7.65% on compensation up to the annual wage base, which is $132,900 in 2019, plus 1.45% on compensation over the annual wage base).
  • Federal unemployment tax (FUTA) of $42 per employee. The FUTA tax rate is 6%, but most employers can take a FUTA credit of 5.4%, resulting in a mere 0.6%.
  • State unemployment tax, which varies with your state and your claims experience (the more claims made by former employees for unemployment benefits, the higher your state unemployment tax rate will be).

You and your employees need insurance coverage

  • We provide Workers’ compensation and General Liability insurance
  • AAA rated insurance with a built in Waver of subrogation
  • We list you as additional insured.

Final thought on the cost aspect would be the recruiting aspect.

  • The cost of advertising and following up with good and bad candidates.
  • Cost of background checks, drug test, and E-verifying when applicable.
  • We are inexpensive when you consider all the mandatory costs of an employee.
  • Get rid of all the hassles.
  • Efficiency – Combining Payroll and Recruiting frees up to 30 days of in-house payroll cost
  • Experience – we can tell immediately if they are going to be a good fit for the position

Buzzwords to Know with Insurance Workman’s Comp


Formed or calculated by the combination of many separate units or items total. A whole formed by combining several (typically disparate) elements


Aggregate is the total amount to be paid, medical, rehabilitation, repairs, benefits.


General Liability

Insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations.


Slip-and-fall accident: A restaurant is sued when a produce deliveryman slips on the wet floor of the freshly mopped kitchen. Tomatoes go flying everywhere, but the real damage is done to the deliveryman’s shinbone, which he breaks smashing it into a table. He sues the restaurant for $100,000 in medical costs, lost wages, and other expenses.

Customer injury lawsuit: A photographer is shooting senior photos for a client. As the family walks into the studio, the mother trips over the cord for the flash and falls to the ground,breaking her collar bone. The family sues the photographer for $75,000 in medical damages.



If you are the indemnified party, an indemnification clause is simply a
promise by the other party to cover your losses if they do something that causes you harm or causes a third party to sue you. … Indemnify and hold harmless mean the same thing to make whole after causing a loss.


We indemnify our worker, that is if they are injured while working, we will use our insurance to make them “whole” again.