Rothwell now allows companies to utilize their services and pay contractors in a compliant way while also ensuring the contractor can feel the tax advantages of being independent.
While Rothwell’s back-office service initially was to service independent contract consultants, the solution has now become a valuable solution to small and large companies alike to solve their problems around independent contractors.
Consider this scenario. A client has decided to bring you on board to help with a project. But the rules and regulations mandate that a contractor must be W2ed so as to be compliant. The client clicks on Rothwell’s links and you are now automatically wired up for your work to be paid by the client (hourly or by-the-project) via Rothwell’s Employer-of-Record service. You are now covered by Workers Comp and any other insurances the client desires, and the client is 100% compliant to all IC classifications and IRS regulations! Rothwell will invoice the client as the approved time sheets come through (the bill rate is your pay rate).
Sometimes independent contractors (ICs) shrink back from this (W2) idea, but the beauty of our model is that you, the contract consultant, can still claim your expenses against your taxable income (and thus save on taxes) which typically is a contractor’s main impetus to being independent. And you can receive many other benefits (including health care insurance). This is truly a Win-Win situation! And it’s portable.
The admin fee is $75/week per worker. In addition there is a sliding scale statutory fee that either the company or the worker can pay. This statutory fee usually starts at 12% and slides down over the year. Any additional healthcare insurance, 401K may add to this (transparent) fee.