FAQs

Do the business owners lose control of their business or employees?

No. The client retains ownership of the company and control over its operations. As co-employers, Actum and the client will contractually share or allocate employer responsibilities and liabilities. Actum will generally only assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for worksite safety and compliance. Actum will be responsible for payroll and employment taxes, will maintain employee records. In general terms, Actum will focus on employment-related issues and the client will be responsible for the actual business operations.

How can 1099's benefit from an EoR arrangement?

People seek financial security, quality health insurance, a safe working environment and opportunities for retirement savings. When an Independent Consultant decides to work with Actum, they are immediately offered the ability to enjoy an expanded employee benefits package, to include a 401(k), life insurance, disability insurance, discount plans, a flexible spending plan and more. Additionally, 1099's are afforded coverage under a worker's compensation plan, State Unemployment Insurance, and General Liability policies. To top it off, under an EoR or portable W-2 arrangement the Independent Consultant could actually get all of these benefits, and still have more money left over after taxes and deductions.

What is the difference between a temporary staffing service and the EoR?

Unlike an EoR situation, a temporary staffing service recruits and hires employees and assigns them to clients to support or supplement the client's workforce in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client's workforce. Actum's EoR typically only works with independent consultants, or employees which the business has recruited and would like to contract with temporarily or during a transition to FTE status.