blog Archives • NexusCW

Employer of Record “Payrolling” Explained

What exactly is Employer of Record (EOR) payrolling anyway? And why has a word that isn’t a word at all become so popular? While we can’t answer the second question, we can give insight into the first. EOR payrolling is a common, but often misunderstood service. Businesses are often unaware that they need or, in fact, are using this service. EOR payrolling is a service provided by third party companies. These companies become the employer of record. They handle the employment life cycles of workers, including onboarding, payroll processing, and offboarding, while they are on assignment with another company. While payroll processing or “payrolling,” an EOR pays payroll taxes, withholds federal and state taxes, administers benefits and maintains compliance. A company benefits from outsourcing these services by saving the time and money expended on these services. Who Can Be Payrolled? Payrollees are temporary workers on… [Read More]

The Differences Between an Employer of Record and a PEO

When you hire workers who live in other states, you are required to fulfill the legal requirements of each state. Most employers do not have the resources or expertise to handle this. These companies choose to partner with either a professional employer organization (PEO) or employer of record (EOR). Understanding the difference between the two will show you why using an EOR, such as NexusCW, is the more beneficial option. Compliance When you hire out-of-state workers, you must comply with that state’s laws and regulations. This includes reviewing proof of worker eligibility and paying taxes in the proper states. Compliance requires you to be familiar with all rules relating to labor and unemployment, document retention and storage, upfront costs and proper forms. Maintaining compliance yourself is a headache and carries the risk of potential IRS fines and legal fees. When you decide to reduce this… [Read More]

Difference Between an Employer of Record and a Staffing Agency

It is not uncommon to hear employer of record services equated with staffing services. Although the two are mutually beneficial, an employer of record is a separate entity from a staffing agency, each with distinct functions and responsibilities. Roles A collaborative relationship exists between an employer of record and its client, which can be a business or a staffing agency. While an employee works for the client, the employer of record assumes the role of employer for tax purposes. The employer of record handles all administrative functions, such as payroll processing, tax withholding and filing, and recordkeeping. The employer of record also conducts pre-employment screening such as background checks and drug testing, in addition to human resources functions such as administering benefits, termination of employees and all other worker issues. On the other hand, a staffing agency recruits candidates to meet the temporary workforce needs… [Read More]

Why Compliance Matters in 2017

With a new era of quickly changing regulations and market trends, compliance is now the top challenge and focus for employers in 2017. The year began with a change in administration, bringing along an overhaul of employment law. In addition, the increase in utilization of contingent labor has continued. Contingent and contract workers, freelancers and independent contractors are flooding the labor market in more numbers than ever before, a trend known as the “gig economy.” With this trend, the risks of non-compliance grow. The federal government is now eager to enact more stringent policies to ensure compliance with tax and regulatory standards. In particular, the United States Department of Labor is more focused on misclassification of workers and has heightened reactions to these cases. Businesses today cannot afford to overlook the importance of maintaining compliance in managing their contingent workforce. It is easy for an… [Read More]

3 Steps to Reaching Your Career Resolutions in 2017

The start of a new year is an ideal time to begin pursuing those career resolutions you made in 2016. Whether you’re revitalizing a job search or ready for a career change, there are proactive steps you can take to help you reach your goals this year. Revamp/update your resume. Your first order of business should be giving your resume a face-lift. With constantly changing hiring trends, you must take the time to make sure yours stands out. In today’s resume world, less is often more. Include links to your portfolio, blog or website which would make an employer sit up and take notice. Build Your Professional Network. You are your brand. Make your presence known in the industry you seek and maintain the connections you have already made. Online, professional portfolios such as LinkedIn help showcase who you are and what you can do…. [Read More]

How to Recruit The Right Talent and Avoid Hiring Catastrophes

Recruiting the right talent is essential to the success of a business, while bad hiring decisions are exceedingly expensive in terms of both time and money. Additionally, high employee turnover lowers morale and creates discouragement within a company. These hiring disasters could have been avoided and the lost resources could have been invested in the right candidate. To that end, companies like Google have adopted the “law of three” for interviewing candidates. This recruiting technique and ones like it are designed to avoid costly hiring mistakes. The “law of three” encompasses the following rules: (1) Always interview a minimum of three candidates. Managers are tempted to end their search early when a suitable candidate is found. Discipline yourself to continue interviewing. The more people you interview, the greater the pool you can select from and the greater your chances of finding the right person. (2)… [Read More]

Generations in the Workplace

A new multi-generational workforce poses both challenges and opportunities for today’s employer. An increase in average retirement age and life expectancy have created an unprecedented five generations coexisting in the modern workforce, also known as the “5G Workforce.” Each generation brings to the workplace a different set of character traits, behavioral patterns and value systems. These differing perceptions and values are a potential source of conflict, frustration and misunderstanding. Unresolved conflict among employees decreases productivity, morale and motivation. Employers must understand generational differences and use this understanding to manage generational diversity. Once properly managed, an employer can capitalize on the unique strengths of this diverse workforce. Successful management of the 5G workforce begins with an understanding of not only the differences among generations, but the environment that shaped those differences. The five generations of the modern workforce include: • Traditionalists: Employees born 1945 and before… [Read More]

The Rise of the Gig Economy

With the rise of what is now known as the “gig economy,” the job market is changing. The gig economy is an environment in which short-term, temporary work is preferred to traditional employment. This contingent workforce is utilized for single projects or tasks, employee absences or field expertise. The benefits of this type of labor have been recognized by both employers and workers alike. For the worker, the gig economy offers flexibility and diversity not found in the traditional job market. Many short-term engagements, such as consulting “gigs,” do not have a firm work schedule. Workers have a newfound flexibility in completing these projects or tasks. This type of work also introduces the ability to diversify. A worker is no longer chained to one company and one position. Contingent workers have the option of career exploration. They can work for many different businesses across a… [Read More]

Employer of Record Services

Assuming the role of Employer of Record gives rise to a complex set of rights and responsibilities. To protect the rights of employees, labor laws and regulations impose numerous duties on an employer. These same rules also impose costly penalties for employers who breach these obligations. For this reason, the role of Employer of Record carries an inherent risk of liability. To mitigate this risk and maintain positive employee relations, an employer must have a clear understanding of the legal obligations involved. The Employer of Record assumes a wide range of administrative, legal and financial responsibilities. Processing payroll is a primary function of the employer. The Employer is responsible for compensating employees for services rendered. However, payroll entails much more than simply issuing a paycheck for wages earned. It involves maintaining strict compliance with wage and hour laws. An employer is also responsible for determining… [Read More]

5 Simple Steps to Writing an Effective Job Description

A job description is an essential tool to attract quality talent. By carefully tailoring the fundamental elements of a job description, you can effectively target the candidate pool you are seeking. Job Title In creating a job description, your first step is to give the position a job title. Although a job title may only be a few words, it plays a crucial role in the purpose of a job description. The job title is the gateway to the talent pool you seek. An effective job title should: reflect the nature and duties of the job indicate skill level in relation to other jobs within the company be consistent with industry standards and other similar jobs so that it can be accessed by online job seekers An example of a good job title is “Senior Nurse Recruiter.” A candidate understands that this is a position… [Read More]