Posted November 24, 20204 yr comment_55804 Hello Readers, I have done a solid research on staffing firms during which another question occured in my mind but couldn't find a specific answer to it. Since I will be hiring my employees through a staffing firm, how will I be paying their salaries, pension schemes and so on? I am looking forward to your assistance. Thank you
November 24, 20204 yr comment_55806 See http://www.wifcon.com/discussion/index.php?/topic/3075-staffing-temp-agency/ Not sure what you are specifically asking but you can google search this “types of staffing agencies” or make similar searches.
November 24, 20204 yr comment_55807 2 hours ago, GovBiz said: Hello Readers, I have done a solid research on staffing firms during which another question occured in my mind but couldn't find a specific answer to it. Since I will be hiring my employees through a staffing firm, how will I be paying their salaries, pension schemes and so on? I am looking forward to your assistance. Thank you Why not ask the staffing agencies who will pay them and how? There are different methods according to what I read.
November 25, 20204 yr Author comment_55815 20 hours ago, joel hoffman said: Why not ask the staffing agencies who will pay them and how? There are different methods according to what I read. Hello Joel, thank you for the input! Is there a way to start paying the staffing firm/employees once the prime contractor has paid me (as a sub-contractor)? I will be more than happy to explain further should there be any confusion.
November 25, 20204 yr comment_55816 Are you asking for a way for you to delay paying for labor until the prime pays you? Incidentally, what are the prime contract and subcontract for?
November 25, 20204 yr Author comment_55817 12 minutes ago, joel hoffman said: Are you asking for a way for you to delay paying for labor until the prime pays you? Incidentally, what are the prime contract and subcontract for? Incidentally, what are the prime contract and subcontract for? If the contract ceiling amount is $700K or more ($1.5m for construction) then the Prime cotractor needs to subcontract at least 35% of a contract. In which case, the subcontractor is the middle man and the Prime contractor therefore pays the sub 35% of the award amount. If the work is 50% then it will be 50% of the award amount and so on. So as a subcontractor, the prime (once they've been awarded) will pay me before the work can begin. Are you asking for a way for you to delay paying for labor until the prime pays you? - Yes Please note, the employees would begin work only after me and the prime have an agreement secured. In which case I want to hire them on standby for when the contract work commences.
November 25, 20204 yr comment_55820 On 11/24/2020 at 6:32 AM, GovBiz said: I have done a solid research on staffing firms during which another question occured in my mind but couldn't find a specific answer to it.Since I will be hiring my employees through a staffing firm, how will I be paying their salaries, pension schemes and so on? Sounds like you should include language in your contract with the prime that you are to be paid 100% in advance within x days after the prime accepts a prime contract award. Also, you should include language in your contract with the staffing agency that they agree to provide all required labor within x days after you receive payment for the labor from your customer. In my experience, the prime contract arrangement you seem to need is not the usual arrangement...the prime would likely need to ask the government for your advance payment and/or obtain a loan to finance it.
November 25, 20204 yr comment_55821 4 hours ago, GovBiz said: So as a subcontractor, the prime (once they've been awarded) will pay me before the work can begin. Why do you think that the prime will pay you the full amount of the subcontract once the prime contract is awarded?
November 25, 20204 yr comment_55822 3 hours ago, Neil Roberts said: Sounds like you should include language in your contract with the prime that you are to be paid 100% in advance within x days after the prime accepts a prime contract award. Also, you should include language in your contract with the staffing agency that they agree to provide all required labor within x days after you receive payment for the labor from your customer. In my experience, the prime contract arrangement you seem to need is not the usual arrangement...the prime would likely need to ask the government for your advance payment and/or obtain a loan to finance it. The government won’t make advance payments for construction contracts under the provisions of the Payments and prompt payment clauses.
November 26, 20204 yr comment_55828 GovBiz, We don’t have enough information about either the prime contract or the subcontract to be able to answer your questions. Are they fixed price or cost reimbursement? Are they for construction or supplies or services? What is the purpose of your sub contract? Is the prime contract with a federal government agency?
November 26, 20204 yr comment_55829 It appears to me that you are going to subcontract all of your labor for your potential subcontract. Even if you aren’t, a company is expected to pay its employees even if it is waiting reimbursement from a higher tiered Contractor. If this is a federal construction contract, the Miller Act and other labor laws apply to all prime and subcontract labor and the prime and subs must submit payroll information for hourly paid workers. The government doesn’t make progress payments for advanced labor costs on fixed price construction contracts. For cost reimbursable construction contracts, which are rare for the federal government, I’m not certain but I’m pretty sure that reimbursement for employee expense is also dependent upon the workers having been paid - not paying the contractor so that it can pay its workers.
November 26, 20204 yr comment_55830 5 hours ago, GovBiz said: How can I delay paying for labor until the prime pays me? My answer to you would be that you will have to obtain financing if necessary to pay your workers then get reimbursed by your prime, unless the prime is willing to provide this financing for you.
