Outsourcing payroll can help to significantly reduce a staffing firm’s costs.
Miami, FL (PRWEB) April 25, 2013
As the economy continues to gradually improve, staffing firms are seeing greater demand for their services. Paragon Financial has experienced an increased interest in factoring services from staffing companies in recent months. Staffing employment was up 2.4% in March vs. a year earlier, according to a report from the American Staffing Association. And further increases in staffing employment are anticipated throughout the year.
The new demand is coming from a wide range of areas, including IT, healthcare, security personnel and other sectors.
As demand continues to grow, staffing companies will need to focus more and more on their core activities of working with client companies; identifying the best, most talented temp personnel for their clients; and deploying this staff into the field.
Further, they will want to grow their bottom line more rapidly, as they pull further away from the less-profitable periods of recent years that occurred in the aftermath of the financial crisis.
To help them in their effort to increase profitability, many staffing firms outsource their payroll function for a variety of reasons.
According to Paragon Financial's President, Michael Rossi, "Outsourcing payroll can help to significantly reduce a staffing firm’s costs. Payroll companies are specialists, and can handle the firm’s payroll more quickly and efficiently than an in-house bookkeeper or other back-office personnel. Indeed, the cost of payroll outsourcing is typically much lower than having in-house people do the job."
Rossi continued by stating payroll firms keep themselves up-to-date on tax laws, and state and federal regulations, and help staffing firms comply more fully and completely with tax and legal requirements. A staffing firm’s in-house personnel may not be as fully current on the tax and regulatory environment as is the payroll firm. This can cost the firm dollars and cents. For example, in some cases, if the wrong paperwork is filed, or if filing deadlines are not met, fines and penalties can run into the thousands of dollars.
ABOUT PARAGON FINANCIAL GROUP
For over 18 years, Paragon Financial Group has provided working capital solutions for growing companies throughout the U.S. They serve small to large-size companies across a wide variety of industries through accounts receivable, invoice factoring, and purchase order financing up to $3 million per month in volume. Paragon is a leading source for receivables financing, government contract financing, payroll funding, and purchase order financing. For more information visit http://www.paragonfinancial.net.