SGA Provides Payrolling Solutions for $12+ B Utilities Client
SGA’s Payrolling Solutions added various benefits to The Client’s environment, allowing business operations to continue without the burden of added risks or project interruption.
The Advantages of Payrolling
As part of common misconception, Payrolling is thought of as an administrative function, but there are aspects to Payrolling that are tremendously beneficial and largely unknown. Payroll is performed for the contingent workforce, which means that your projectized IT contractors fall into the payrolling category. When payrolling occurs, the company processing payroll acts as the Employee of Record for the consultant, which shields the client company from various liabilities and responsibilities. To start, this includes the collection of payroll taxes and payment of employer taxes such as workers compensation. Additionally, the employer of record must provide benefits to consultants as well, such as Medical, Dental and 401k plans, and they must be able to provide general liability insurance. To further complicate things, each state has its own employm
Our Client’s Problem
SGA prides ourselves on being an IT Solutions company, however we are also a trusted partner of our clients, which means that we listen to their problems and find ways to develop the best solutions. In this case, SGA's client was going through vendor realignment, which is not uncommon in the industry. However, with implementing changes to the vendor list comes an intriguing problem – what do you do with active consultants currently working for vendors that will be eliminated? In such a case, the consultants of eliminated vendors may wind up with terminated contracts, which could cause major disruptions in operational and project related activities. Absorbing all of the contractors would also leave The Client open to various risks and costs related to temporary employee payrolling.
SGA's Payrolling Services was chosen as the solution to The Client's problem. Thus, SGA became the employee of record for the consultants of eliminated vendors. This included capturing and documenting all needed candidate personal information, re-conducting due-diligence and going through all major processes needed to comply with both The Client's, and legal requirements. SGA took care of all related payrolling activities such as taxes, benefits, administrative work and staying on top of employment policy changes. As an added benefit of the payrolling solution, SGA frequently checked in with consultants to ensure their job satisfaction, and made sure we were doing all we can to facilitate a healthy engagement.
Overall, SGA's Payroll Solution has achieved significant success for The Client, as their business objectives were not disrupted and projects continued to progress in a healthy manner. The Client was able to retain the same staff as before the transition, which was a major requirement of the solution. SGA also shielded The Client from various risks and responsibilities serving as the employer of record for these consultants. With SGA's Payrolling Services, the client was able to absorb cost savings as SGA's solution was able to beat the competition in terms of pricing, and SGA ensured a sound workforce by constantly remaining in contact with the workforce.