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One of the main reasons so many companies are turning to contracting as an alternative to hiring traditional, full-time employees is to avoid the costs associated with providing benefits. Well, in light of a recent Human Resource Executive Online article that shows how much those benefits are costing employers, it’s no wonder they are looking to bypass those costs. The article, citing data from the U.S. Bureau of Labor Statistics, states that benefits account for 29% of employer’s compensation expenses.

If President Obama’s healthcare reform survives the influx of Republicans in Congress, these costs have no where to go but up, which will make hiring contractors an even more attractive option for employers. You can help your clients by offering to provide them with contractors and outsourcing their employment to a contracting back-office that will take on the payroll taxes and offer benefits. For example, FoxHire offers contractors a full-menu of benefits and contributes to a group health care plan through Anthem Blue Cross and Blue Shield. That way, your clients still can promise the benefits that quality workers expect without having to take on the financial and administrative burden that comes with providing those benefits.

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