What We Cover


Cost of an Employee

As the employer OperationIT will make all the necessary contributions to Social Security, Federal and State employment insurance’s, local disability insurance and workers compensation.

In addition to statutory burden, recruiting, interviewing, evaluation and administration of the consultant process our rates cover the following costs:

Payroll and Employment

  1. Payroll Processing
  2. Payroll Record Keeping
  3. Issuance of W4’s and W2’s
  4. Quarterly Reports
  5. Financing of Payroll

Worker’s Compensation Management

  1. Claims Filing
  2. Claims Management
  3. Payroll audits

Unemployment Claims

  1. Claims Filing
  2. Claims Management

Billing and MIS

  1. Customized Weekly, Bi-Weekly or Monthly Invoices
  2. Optional electronic billing
  3. Management Information reports (monthly, quarterly, annually)

Personnel Management

  1. Records Management
  2. Compliance with EEO, IRCA, ADA, COBRA

Insurance Costs

  1. Compressive General Liability
  2. Excess Liability

Mandatory Costs

  1. Employer Social Security 6.2%
  2. Employer Medicare 1.45%
  3. Matched Taxes, Federal Unemployment, State Unemployment
  4. Workers Compensation, Disability 8%-10%


OperationIT takes pride in our thorough recruiting process. Our trained and experienced technical recruiters put each potential candidate through a rigorous process to make sure they are the right fit for you, our valued client.

Below you will find other expenses that are built into our rates and designed to save our clients a substantial amount of money.

Hiring & Turnover


  1. Advertising & Marketing Position (Attracting applicants)
  2. Interviewing
  3. Double Phone Screening
  4. Face to Face Interview
  5. Technical Testing
  6. Background Check (7 Year History)
  7. Reference Check
  8. Department of Homeland Security Checks
  9. Drug Testing Upon Request
  10. Orientation

Turnover Costs

  1. Performing Termination
  2. Exit Interview
  3. Unemployment Documentation, Audits & Reports
  4. All Hiring Procedure as stated above
  5. Formal Training
  6. Performance differential: the difference in productivity between those who leave and their replacements
  7. Lost productivity
  8. Cost of additional overtime/workload for existing employees

SHRM, the Society for Human Resource Management, estimated that it costs $3,500.00 to replace one $8.00 per hour employee when all costs — recruiting, interviewing, hiring, training, reduced productivity, etcetera, were considered. SHRM’s estimate was the lowest of 17 nationally respected companies who calculate this cost! (That is over 20% of the persons annual income, for a junior level refill)

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