How An Employment Agency Can Help With Payroll

Payroll. When you hear that word, what do you think of? Your bottom line diminishing? Paperwork? Laws?

There’s a lot that goes into payroll and it can feel overwhelming, especially for a small business. From calculating payroll taxes to trying to reduce how much you pay, it can feel like a never-ending math class. If you are owner of a small business, you wear many hats, some of which may not be your greatest strengths. You started a business to sell or do what you are good at, not spend time being an HR department. Sometimes, it’s best to do what you are good at and leave the rest up to the experts. Outsourcing your payroll needs is one such option.

There are different levels of outsourcing payroll. You can outsource just the paperwork or you can outsource your employees altogether. An Employment Agency can help you do part or all of that and get you back to doing what you do best, running your business.

Here is how an employment agency can help with payroll and even help reduce payroll costs:

Temporary Payroll Services and Staffing

One way to best use an employment agency is to use them for your first 90 days of hiring an employee. The highest likelihood of turnover is in the first 90 days. That increases your turnover and risk for unemployment claims. These are some of the hidden costs of a new hire. Employment agencies take the hit of the unemployment claim because the employee will be on the staffing agency’s payroll not yours.

Long Term Payroll Services and Staffing

A second way an employment agency can help is keeping the employee on their payroll and not yours. The employment agency is responsible for all payroll costs, onboarding, new hire paperwork, reporting and more.

Other Benefits of An Employment Agency

An employment agency can do more than just run your payroll and employ people to work for you. They can also handle the entire recruiting, interviewing and hiring process. That can save you thousands of dollars in time spent and high turnover costs. Hiring the best people can be difficult. An employment agency has a pool of qualified candidates that they’ve already vetted and approved.


Consider using an employment agency when bringing on a new employee and see how much time and money you save by not doing it all yourself. Leave hiring up to the experts so you can grow your business.

Learn the basics of payroll in our comprehensive payroll guide for California Business Owners!