Employment placement services

Temporary employees you post with a client. You bill the client for the temp's work at a specified rate, plus taxes, benefits, etc, plus your margin. Since the temps are actually your employees, you have an obligation under state wage-payment laws and federal wage-hour laws to pay the employee for time actually worked within the time limit set by the state wage-payment law. Such limits are typically weekly.

In this circumstance, you must have the capital to meet your payroll and payroll taxes on time, or face significant liabilities and fines. It would be prudent to have sufficient capital of your own to cover at least six weeks of these expenses.