OneSource Cost Break Down

Has Your Company Considered “Outsourcing” Your Payroll, Benefits, HR and Other Employee Administration? The cost of “Employee Administration” may surprise you. Let’s keep it simple.

There are four areas of cost related to employee administration for all businesses:

  • FICA/Medicare (Social Security and Medicare)
  • FUTA/SUTA (Federal and State Unemployment Taxes)
  • Workers’ Compensation Premiums
  • Administrative Costs (Recruiting, Legal, Human Resources, Payroll etc.)
The first three costs are fixed. Social Security is 6.20% with a cut-off amount that changes every January. Medicare is 1.45% on all wages. Federal unemployment is .80% on the first $7,000 of wages and State Unemployment is a percentage based on an employer’s own experience. Administrative costs are not fixed and will vary from employer to employer. With OneSource, we stabilize your costs by consolidating many administrative services into one vendor. By utilizing OneSource’s services, we turn your employee administrative variable costs into one fixed cost!

Our administrative fee is assessed by using a percentage of gross payroll. In some cases, a flat administrative fee may be proposed. A good range is between two to four percent of gross payroll depending on the size of the annual payroll. OneSource breaks out your costs of the four areas listed above. We do not present one percentage rate known as “bundled” rating that is used by many of our competitors. Instead, we use full disclosure and itemize your costs, and we comply with all statutory payroll cut-off amounts.

Your business has all of the costs listed above. How much is your time worth? Whether you select the PEO or ASO model by outsourcing your employee administrative functions, you will save time and money!