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glossary
- Acronyms
- VMS – Vendor Management System
- MSP – Managed Service Provider
- SaaS – Software as a Service
- VOP – Vendor on Premise - Outsourcing arrangement where a full-time staffing coordinator administers the entire outsourcing process for the client: interviewing, testing and screening applicants, filling job assignments, issuing payrolls, providing on-site management of the department.
- TAM – Talent Acquisition Management
- ERP – Enterprise Resource Planning
- FUTA - Federal Unemployment Tax Act. "F.U.T.A." is the term used for the payroll tax every employer must pay under this Act. This tax cannot be withheld from the employee's pay, it is solely the responsibility of the employer.
- SUTA - State Unemployment Tax Assessment
- SUI - State Unemployment Insurance. Each state imposes a payroll tax on the employer for unemployment benefits. The tax ranges from 1% to over 5% of each dollar of payroll. The employer is entirely responsible for paying the tax, it cannot be deducted from the employee's pay.
- ERISA - Employment Retirement Income Security Act. A federal law that governs pension and welfare employee benefit plans. Sets guidelines for these programs. A group of complex and extensive law governing employee benefits.
- Spend
- Bill Rate – the rate billed by the supply firm for providing a contractor
- Pay Rate – the rate earned by the contractor as their pay
- Rate Card – this allows companies to designate an appropriate rate based on pre-selected criteria such as job description or general skill set. Rate cards often include a pay rate, the appropriate mark-up, and the calculated bill rate.
- Mark-up - The percentage that the Client Company bill rate is greater than the Contractor salary. For example, if the hourly bill rate is $30.00 and the hourly salary is $20.00, the Markup is 50%.
- Margin - Dollar amount difference between the Client Company bill rate and the Contractor salary. For example, if the hourly bill rate is $30.00 and the hourly salary is $20.00, the Margin is $10.00. See also "Markup".
- Sourcing
- Vendor Neutral - a firm that is completely impartial in it's relationships to suppliers
- Payrolling - A term primarily found in the temporary help literature. Refers to situations where all or a portion of a client-customer’s employees are on the payroll of a staffing firm but working at the client-customer’s location. The client company may want to screen or interview the employees because of safety or experience requirements, but they do not want the recordkeeping obligations associated with payroll and withholding. Traditionally, a recruiter does not locate a payroll candidate.
- Sole-Source - One "source" or means of acquiring all of your staffing needs. Commonly referred to as Sole-Source Supplier which allows a Client Company to go to one recruiter (firm) for all their staffing needs. (Permanent, Temp-to-Perm, Contract, Payrolling, Etc.)
- Workforce Process
- Full Life-cycle Recruitment - The process of recruiting workers from recruitment to on-boarding to off-boarding
- Contractor - Employee of "Staffing Company" who provides services to a "Client Company" under the day-to-day supervision of the client.
- Risk
- Co-employment - The employment relationship where two or more legally separated employers share potential or actual employer responsibilities with a common employee[s].
- Independent Contractor - An Independent Contractor provides services to a company, but is not an employee of that company. The company pays the Independent Contractor without withholding payroll taxes or paying the employer's share of payroll taxes. An independent contractor has the right to decide how the work will be done and may hire others to assist or do the work. Independent contractors also do not receive wages. Independent Contractors are under intense scrutiny from the IRS and states because of abuses costing billions of dollars of taxes.
- W-2 vs. 1099MISC - At the end of each year, workers either receive a Form W-2 or a Form 1099MISC. An employee receives a W-2 and has all required payroll taxes withheld throughout the year. An Independent contractor receives a 1099 and has no payroll taxes withheld.
- Technology
- Back Office - handles the administrative duties and payroll functions of a contract placement. Administrative duties include: legal contracts, insurance requirements, employee forms, paperwork, etc. Payroll functions include: funding, taxes, unemployment, workers’ compensation, etc.
- Business Intelligence
- Business Intelligence - Business intelligence (BI) is a category of applications and technologies for gathering, storing, analyzing, and providing access to data to help end users make better business decisions.
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