Well, at some point your business will grow, and every small business will need to hire workers and helpers. You can only get away with the casual labor law for so long. If you don’t follow the employment rules eventually you get will yourself into hot water or find yourself on the wrong side of a lawsuit. All the accounting must be done correctly and you must withhold the proper payroll taxes otherwise there are big fines, possible impounds, and even seizures of your bank account. If you don’t have time to learn accounting, or just don’t know how to deal with this you might try a temporary agency.
The temporary agency will hire the workers for you, screen them, and you pay them a set rate, and they pay all the payroll taxes. This is good because if they make a mistake it’s their problem, and if you wish to fire an employee, you just call up the temporary agency and say you aren’t interested in having that person work at your establishment anymore. They will take that person off the list and reassign them to some other suitable business, giving you a fresh replacement. Doing payroll taxes can be a complete headache even if you have the right software or you hire a payroll accounting firm.
Is hiring a temporary employment agency the right way to play it? It might be, even if you do it for only a little while, you might get a number of employees you really like, and you can buy out the contract, and hire them directly later. Of course, there are always challenges with good business model or vendor. So let me tell you a horror story about one of our franchisees in San Antonio.
It turns out that our franchisee in San Antonio had hired workers from a temporary agency who turned out to be illegal aliens. As he was in his work vehicle going to a job site there was a roadside checkpoint which pulled over his truck. The checkpoint took away the workers and sent them back to Mexico. The temporary agency told him it wasn’t their fault because they had presented driver’s licenses, and Social Security cards. Of course, they were fake.
The temporary agency claimed they had no idea, but somehow I doubt that. Therefore, you should only use a reputable temporary agency if you plan on using this strategy to prevent payroll accounting headaches. Indeed I hope you will please consider all this and think on it.