FAQs

• What is the fundamental difference between an EOR and a PEO? An Employer of Record (EOR) takes on 100% of the employment liability for the contractors you place, including payroll, taxes, benefits, workers' compensation, and unemployment claims. The staffing agency acts as the recruiting and placement firm. A Professional Employer Organization (PEO), on the other hand, operates under a co-employment model, where both your agency and the PEO share legal liability for your contractors. For staffing agencies, an EOR generally offers a cleaner, safer, and less complex path to compliance and risk mitigation, especially when dealing with placements across multiple states.
  
• How does using Catalyst impact my firm’s profitability? Catalyst is structured to maximize your agency's revenue. Unlike traditional staffing models that might take a substantial percentage cut, our transparent EOR fee structure ensures you keep 100% of your placement fee markups. We handle the operational costs of employment (like payroll processing and tax filing), allowing you to focus your resources on sales and recruiting, directly increasing your take-home profit on every contract placement.
• Will using an EOR affect my relationship with my contractors? No. Your agency retains full control over the recruitment, placement, rates, and day-to-day management of your contractors. Catalyst handles the backend administrative tasks, acting as the legal employer solely for tax and compliance purposes. We process their payroll, offer their benefits, and manage their W-2s, but your agency remains their primary contact and manager, preserving your critical talent relationship.
• How quickly can I place a contractor through Catalyst's EOR service?
  Once your agency is onboarded, the process is extremely fast. We can typically onboard a new contractor and begin processing their payroll within 24 to 48 hours of receiving their signed hiring paperwork. Our streamlined digital onboarding ensures that your agency can respond quickly to client demands and place contractors without delay, allowing you to launch new contract desks instantly.
• Does Catalyst help with compliance for placements across different states?
  Absolutely. One of the greatest benefits of partnering with Catalyst is our ability to manage 50-state compliance for your contract placements. We handle the varying state and local tax regulations, workers' compensation requirements, minimum wage laws, and unemployment insurance for every jurisdiction. This service eliminates the administrative burden and risk associated with expanding your staffing footprint nationally.