How to Avoid Expensive Payroll Costs and Still Get the Job Done

The goal of every business owner is to be profitable. The more expenses your business has, the less profitable your business will be. Deciphering what expenses are necessary or wasteful is important when observing the condition of your bottom line. One of the biggest expenses for any business is payroll and the costs surrounding the need for staff. According to a Small Business Administration article on the what the actual cost is for having employees, “the average cost is typically 1.25 to 1.4 times” the employees’ salary (, June 2021). The employee’s hourly or annual wage is just one factor to consider. Here are some other things to consider when factoring the cost of having employees versus making a business investment by creating a working relationship with a business support company like FR8 Solutions:

Some of the Expenses Associated to:


                                                  Hiring Company Employees                                              VS.                  Outsourcing Partnership Agreement

Wages –  Fair compensation for the time invested for the duties in which they have been hired. In addition, employees may want to receive sick pay, paid time off and vacation pay. An agreement is created between the company needing support and the business support company. Whether it is a one-time project, ongoing support or intermittent help as needed.  The agreement states the working relationship between parties and investment the company will need to make to continue the working relationship.
Benefits –  Health, Vision, Dental, Life, FSA accounts, or tuition reimbursement, retirement accounts, or gym club memberships. In addition, unless you have knowledge and experience as a Plan Administrator, you will need to hire someone to manage all the employee benefits.
Taxes –  As an employer, you will be required to withhold and pay taxes for that employee in that period.
Insurance –  Workman’s Compensation and Unemployment Insurance.
Office Space –  Having employees may require for you to have an office for them to report to every day. In addition to cost of leasing the space, you may also need to pay utilities and insurance.
Office Furnishing and Equipment –  At minimum, the company will need to furnish the office with all the necessary items for the office to function and the employee to satisfactorily perform their duties in order to meet your business needs. This may also require the need to hire a tech support team/services for computer support. 
Time Investment  Advertising, Interviewing, candidate selection, setting up payroll, benefits, setting up their working station, and training. 


In addition to the cost savings, there are many other advantages to creating a working relationship with a business support company instead of hiring a new employee.  For example, working with an established business that guarantees professionalism, experience, quality and accountability. 

Call FR8 Solutions today for a free consultation to review how we can be a part of your business success! 970-373-3483