Basic Consultants Pricing
The Solo Workforce premium employer of record pricing model addresses all three primary stakeholders: Consultants, Companies and Recruiters. This blog post explains how: "Employer-of-Record Pricing: What Are You Paying?"
Member Service Fee
Solo Workforce charges your division a fixed service fee of just 3.75% of collected revenues when we process payroll after receipt of payment from the client. This means, if you generate $100,000 a year in gross revenues, our service fee to your division will be $3,750. We recommend you build our member service fee into your billing rate when negotiating your rate with the client.
How our Service Fee Compares
Our member service fee is lower than any other employer of record in the United States.
Service Fee Cap
We cap our member service fee at $5,750 after one year. Once your collected revenues reach $153,333, our service fee will freeze at $5,750. The table below illustrates how this works.
Solo Workforce Is Actually Better than Free
Save Thousands of Dollars
Our service fee is more than offset by the thousands of dollars in combined financial advantages you enjoy as a Solo Workforce member. Your actual savings will vary from state to state, by your income tax bracket and by other factors, including how much you contribute to your tax-deferred retirement account and how much you claim in tax-free expense reimbursements.
Better than Free
This is why we can say with certainty that, as a Solo Workforce member, you can easily earn higher total tax-advantaged compensation than a self-employed consultant with the same gross revenues. Solo Workforce is, indeed, “better than free”.
2% Surcharge for Payroll in Advance of Payment by the Client.
Most highly compensated contract professionals prefer to wait for the client to remit payment before processing payroll, understanding that payroll advance funding has a real cost. We charge your division 2% of collected revenues when you instruct us to process your payroll in advance of remittance by the client. The surcharge for advance funding is not capped.
1% Surcharge for Non-US Citizens
Occasionally, we have the opportunity to sponsor work visas for non-US citizens. There is a surcharge to your division of 1% of collected revenues if you are a non-US citizen requiring a work visa. Additional pre-tax charges to your division may apply as required to process your work visa. The surcharge for non-US citizens is not capped.
Management Fee Charged to Client Companies
4.25% Management Fee
We charge the client a management fee equal to 4.25% of the invoiced amount. The management fee covers our cost for managing contingent worker compliance, risk mitigation, payroll processing and benefits administration. The fee is added as a separate line item on the invoice and is not charged to your division.
Often, when we are required to subcontract through an intermediary, such as a recruiter or prime contractor, billing the client directly is not possible. In this case, we will add 4.25% to your billing amount when negotiating your independent contractor billing rate with the intermediary. Your division administrator will assist you in this negotiation.
If your basic independent contractor billing rate is $100/hour, we will add 4.25% to the invoice and bill the client $104.25/hour.
Generous Referral Rewards
Help Solo Workforce Grow and Earn Generous Referral Rewards
When a contractor you refer joins Solo Workforce, you will earn generous referral rewards equal to 1% of the contractor’s gross revenues. Referral rewards continue indefinitely for as long as both you and your referred contractors remain members of Solo Workforce, or five years if you leave Solo Workforce.
Assuming each referred contractor generates average gross revenues of $100,000 per year, your referral rewards will total:
|1 Referral||10 Referrals||100 Referrals|
|After 1 Year||$1,000||$10,000||$100,000|
|After 5 Years||$5,000||$50,000||$500,000|