If we use TPX Global® instead of hiring a direct 1099 contractor, isn’t it that we will have to pay a higher amount to cover items such as withholding taxes, etc.?
First, you must consider that a 1099 independent contractor self-pays for employment taxes which cover both the employee and employer share for Social Security Tax. Thus, that person actually pays more from his/her pay in terms of taxes as compared to a W-2 temporary employee. TPX Global® Enterprise Payrolling Services includes advising our clients on how to negotiate for best rates with temporary employees which highlights the value of non-cash compensation. This results to reasonable cost savings for your company.
