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2 min read

How to Know If Passthrough Service is Right for Your Business

How to Know If Passthrough Service is Right for Your Business


In the world of contingent workforce management, the Passthrough service has gained a lot of traction. While a Passthrough can work in conjunction with other staffing services, such as recruitment and screening, it also functions as a separate entity, allowing the service to be offered separately to businesses.

Determining whether a Passthrough service is right for your business often feels like a challenge. However, if you are experiencing specific personnel-related strains, a Passthrough service may be the ideal solution. nTech specializes in Passthrough solutions that help your business run optimally.

If you are wondering whether you should secure Passthrough services, here are some of the key points to consider.

Internal HR Capacity

For companies that employ a large number of contingent workers on a seasonal basis, the burden on your internal HR staff can be significant. Often, they are tasked with tracking workers’ hours, processing payroll, managing tax obligations, administering benefits, and numerous other tasks for the supplemental employees.

If your contingent workforce fluctuates substantially between peak and off-seasons, hiring additional HR professionals to manage the increased workload might not be cost-effective. However, overworking your existing staff also creates risks and financial burdens, ranging from rising rates or burnout to increased payroll costs for overtime.

Additionally, screening and onboarding duties can be incredibly taxing, especially if you need to significantly supplement your workforce in a short period. This is another challenge that increases the workload on your internal HR staff and may be difficult to manage if you don’t have enough employees to handle the tasks effectively.

By securing Passthrough services, your internal HR staff members can focus on other tasks associated with your contingent workers. The Passthrough service steps into that role, handling everything from payroll to tax filings to benefit administration for that segment of your workforce. Further, they can manage the screening and onboarding processes, relieving that strain as well.

This allows your internal staff to concentrate their efforts on permanent employees, keeping those operations running smoothly throughout the year, and gives you the ability to right-size that department based on the number of core employees you maintain.

Financial Risk Reduction

When you manage your contingent workforce internally, you assume a substantial amount of financial risk. You shoulder the costs of unemployment insurance and workers’ compensation as long as the person remains on staff. If the employee becomes injured on the job, you are responsible for those costs. When you no longer need them to stay with your company, you must handle any subsequent unemployment claims.

By using a Passthrough service, those financial risks are transitioned to the provider. Since you are not the official employer-of-record, employment-related burdens are no longer your responsibility. Not only does this lessen the financial impact of injuries and layoffs, but it also reduces your administrative duties, creating a cost-effective approach to managing your contingent workers.

Ultimately, a Passthrough service gives you the ability to outsource HR functions that directly relate to your contingent workforce cost-effectively and efficiently, ensuring your internal staff can concentrate on their core duties while simultaneously reducing risk.

If you would like to learn more about Passthrough services, the professionals at nTech can examine your current situation and help you find a solution that is right for you. Contact us to speak with one of our knowledgeable staff members today and see how our Passthrough expertise can help you determine if Passthrough services are the best choice for your business.

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