P.A.C.E. Costs Less

Compare: Service Fee to Convert a 1099 Contractor to W-2
P.A.C.E. Traditional Staffing Vendor

No Mark-up on IC Billings
P.A.C.E. does NOT charge your organization to convert a non-compliant independent contractor to Warranted W-2™ employment status.

P.A.C.E. does charge the P.A.C.E. employee's account a nominal administrative fee equal to 6% of collected revenues. You may opt to subsidize part or all of the P.A.C.E. administrative fee as a mark-up on billings, but that is between you and the contractor.

P.A.C.E. does not set the billing rate for contractors that P.A.C.E. employs.

Varies. Often 10 - 25% mark-up on IC Billings
Temporary help services typically charge 10 - 25% on top of the independent contractor's 1099 billing rate when they convert the contractor to W-2 employment status.

Generic payrolling firms may charge 8 - 12% on top of the loaded labor cost (equivalent to 1099 billing rate) to employ your contract professionals.

Example: If the contractor's 1099 billing rate is $100, P.A.C.E. will bill your organization $100 to convert the independent contractor to W-2 status and process payroll.


Example: If the contractor's 1099 billing rate is $100, the staffing vendor will generally bill $110 - $125 and a generic payrolling firm may bill $108 - $112.


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