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  • Writer's pictureBlair Shunk

Comparison: IntiSolutions Flat Rate vs. Fees by the Hour for Flow-through or Contractor Payrolling

Unlike other Agencies, IntiSolutions charges a flat rate fee for their services*. Here are some frequently asked questions about how it works.

Is a flat rate better for long term or short term contracting?

  • The minimum assignment term for any contractor is 3 months. 

  • Outside of this requirement, the length of the assignment doesn't really matter because onboarding is an automated process for creating and approving contract documents. 

  • Note: When a contractor is engaged intermittently, say for a one month assignment that is required 3-4 times a year, our flat rate model is probably not the best choice.

What is the breakeven number of hours for a part-time worker using the current flat rate management fee vs. an hourly charge?

  • If the contractor is being charged $4.00/ hour for payroll services, the break even point for a part time contractor is approximately 120 hours a month.

Using the same calculations with an estimated 15% tax deduction the breakeven point is 105 hours a month.

If the contractor is not working full time hours, why don’t you reduce the management fee? 

  • Our obligations to maintain our liability insurance, accounting records, and client relationships doesn’t end when someone clocks off work.

  • Do I call my cable provider to suspend their charges while I am away on holidays? After all, I’m not at home! Of course not, and the same logic applies when the contractor is not at work - IntiSolutions is still working.

The opposite applies as follows: 

What if the contractor has to work extra hours?

  • With IntiSolutions, Contractor’s hours are unburdened by fees when they work overtime. You save money when contractors work extra hours on emergencies and critical projects using the management fee vs. an hourly charge.

  • Anytime a contractor is working more than 120 hours a month, then those hours are unburdened by any management fee, and that’s where extra savings and contractor earnings are realized.

  • PLUS what they save from the income tax deduction.

  • PLUS PLUS: This also means that IntiSolutions will NEVER pressure a contractor to work overtime. 

Contact us to start saving money today

Want to learn how you can benefit from the IntiSolutions flat rate model? Book a consultation and we can if IntiSolutions is a fit for you. Click here to book a Zoom meeting.

  • Sometimes the client or the contractor insist upon hourly charges, and we reluctantly comply.

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