Does IPSs fee include the employers side of payroll taxes…?
• Most contract employment agencies charge an overall margin that includes a fixed mark-up for the employer’s share of taxes. IPS does not. Instead your profit center is charged only the actual amount of employer taxes based on your actual wage. • Reason being: if you have extensive tax-free distributions for health benefits, retirement plans, and expense reimbursement then your taxable wages will be compared to your profit centers total revenues. • Your payroll taxes for Unemployment Insurance and Social Security have annual caps above which no tax is owed. The fixed-markups charged by some agencies don’t allow for these contingencies, so they overcharge you for payroll taxes that are now owed.
