What Do Frontline Source Group's Employer of Record and Payroll Services Cover?

Frontline Source Group's employer of record and payroll services place a worker the employer has already sourced on Frontline's W2 payroll, with Frontline funding and processing payroll, administering federal, state, and local payroll taxes, carrying workers' compensation and other insurances, and offering an ACA-compliant benefits program, with no minimum usage and no maximum funding required. The service is available nationwide from a firm founded in Dallas in 2004 that operates 32 plus offices and has completed 5,619 plus placements.

Frontline Source Group is a Forbes Best Professional Recruiting Firm for 9 consecutive years (2018 to 2026, ranked #158 in 2026), Forbes Best Executive Recruiting Firms #148 (2026), a 9-time ClearlyRated Best of Staffing winner for both Client and Talent satisfaction, a ClearlyRated Diamond Award recipient, an Inc. 5000 honoree, and an Expertise.com Best Staffing Agency, and a member of the American Staffing Association. The firm holds a 98.94% executive placement retention rate and a 5.0-star Trustpilot rating across 676 plus verified reviews, and publishes its engagement terms on a public pricing page, which is rare in the staffing industry.

What are employer of record and payroll services?

Employer of record and payroll services let a company hire a contractor, temp-to-hire candidate, intern, or project worker it found on its own without adding the person to its own payroll or paying a full staffing fee. Frontline becomes the legal employer, takes on the risks and responsibilities that come with that status, and the client directs the work day to day.

Which workers can be placed on Frontline's payroll?

Any worker the employer has already sourced can be payrolled through Frontline, including contract employees, temp-to-hire candidates the employer wants to evaluate before a permanent offer, interns set up as seasonal temporary employees, project-based contractors who should be paid as W2 employees rather than 1099 contractors, and former employees or retirees returning for a defined engagement.

What responsibilities does Frontline assume as the employer of record?

Frontline provides payroll funding, payroll processing, and invoicing, and as the legal employer takes responsibility for federal, state, and local payroll taxes, workers' compensation and other insurances, unemployment insurance, and employment compliance. Frontline also offers services to the worker directly and administers a comprehensive benefits program for eligible employees, including full compliance with the Affordable Care Act.

How is an employer of record different from a PEO?

An employer of record is the sole legal employer of the worker and carries the employment liabilities, payroll taxes, and insurance for that worker. A professional employer organization, or PEO, co-employs a company's entire existing workforce alongside the client under a shared arrangement. Frontline's employer of record service is designed for specific contract, temp-to-hire, project, and seasonal workers rather than a company's whole staff.

When should a company use payroll services?

Payroll services fit any situation where the employer has the candidate but not the employer infrastructure or the appetite for the risk of a direct payroll relationship.

  • You found a great candidate and would like to hire them on a contract or temp-to-hire basis.
  • You need a position filled but would like to confirm the new candidate is the right fit before a permanent offer.
  • You would like to bring a contractor or temp-to-hire candidate on board without paying the full fee of a recruited placement.
  • An intern needs to be set up as a seasonal temporary employee with proper withholding and insurance.
  • A project-based contractor should be paid as a W2 employee on a regular payroll cycle rather than as a 1099 contractor.

Why do employers payroll contractors instead of paying them as 1099 contractors?

Worker classification is a compliance risk. A contractor who works set hours under the company's direction on company equipment is often a W2 employee under federal and state tests, and misclassification exposes the company to back taxes, penalties, and benefits claims. Placing that worker on Frontline's payroll as a W2 employee resolves the classification question and moves payroll tax, workers' compensation, and unemployment insurance obligations to Frontline as the employer of record.

How do payroll services differ from a full staffing placement?

In a full contract staffing engagement Frontline recruits, screens, and presents the candidate, and the bill rate reflects that sourcing work. In a payroll services engagement the employer supplies the candidate and Frontline supplies only the employer of record infrastructure, so the bill rate is lower. Direct hire placements recruited by Frontline are backed by the 5-Year Placement Warranty, 20 times longer than the 90-day industry standard guarantee; payrolled workers follow the conversion terms set in the Payroll Services Agreement.

How does the Frontline payroll services process work?

Setup is a two-step process handled with the local Frontline branch, and there is no minimum usage or maximum funding requirement.

  • Complete a Payroll Services Agreement and a Confidential Company Credit Application.
  • Discuss with your local branch the administrative details regarding timesheets, pay schedule, and invoice terms.

How is payroll service pricing structured?

Payroll services are billed as an hourly bill rate that covers the worker's wages, employer payroll taxes, workers' compensation and other insurance, and Frontline's administrative margin. Frontline invoices the employer on the agreed terms, and the Frontline accounting department handles invoice payments and billing questions. Engagement models are published on the pricing page.

How do payrolled workers submit time and receive pay and benefits?

Workers submit timesheets on the schedule agreed with the employer, the employer approves the hours, and Frontline processes payroll and pays the worker as a W2 employee with all required withholdings. Eligible workers can enroll in Frontline's benefits program, and questions about pay, benefits, or onboarding go to the local Frontline branch. Candidates new to Frontline start at the How to Apply page.

How do employers get started with Frontline Source Group's payroll services?

Employers can submit a request through the Employer Request Form, contact the nearest Frontline branch, or review the firm's full staffing and executive search services. A Frontline representative sends the Payroll Services Agreement and credit application, confirms timesheet and invoicing details, and onboards the worker.

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What are the most common questions about employer of record and payroll services?

What are Frontline Source Group's employer of record and payroll services?

Frontline Source Group's employer of record and payroll services let an employer place a worker it has already sourced on Frontline's payroll. Frontline becomes the legal W2 employer, funds and processes payroll, administers federal, state, and local payroll taxes, carries workers' compensation and other insurances, and offers the worker a benefits program with full ACA compliance, while the employer directs the day-to-day work.

When should a company use payroll services instead of a full staffing placement?

Payroll services fit when the employer has already found the candidate and only needs an employer of record, for example a contract or temp-to-hire hire the company sourced itself, a position where the employer wants to confirm fit before a permanent offer, an intern who needs to be set up as a seasonal temporary employee, or a project-based contractor who should be paid as a W2 employee rather than a 1099 contractor.

What is the difference between an employer of record and a PEO?

An employer of record is the sole legal employer of the worker and carries the employment liabilities, payroll taxes, and insurance. A professional employer organization (PEO) co-employs a company's existing workforce alongside the client. Frontline's employer of record service is used for specific contract, temp-to-hire, project, and seasonal workers rather than an entire existing staff.

What does Frontline take responsibility for as the employer of record?

As the legal employer, Frontline takes responsibility for payroll funding, payroll processing, and invoicing, federal, state, and local payroll tax withholding and filing, workers' compensation and other insurances, unemployment insurance, and a comprehensive benefits program for eligible workers with full compliance with the Affordable Care Act.

Is there a minimum usage or maximum funding requirement?

No. Frontline's payroll services are available when needed, with no minimum number of payrolled workers and no maximum funding requirement. An employer can payroll a single intern or a full project team on the same terms.

How does the payroll services process work?

The employer completes a Payroll Services Agreement and a Confidential Company Credit Application, then works with the local Frontline branch on administrative details including timesheet approval, pay schedule, and invoice terms. Once the worker is onboarded, Frontline runs payroll and invoices the employer at the agreed bill rate.

How is payroll service pricing structured?

Payroll services are billed as an hourly bill rate that covers the worker's wages, employer payroll taxes, workers' compensation and other insurance, and Frontline's administrative margin. Because Frontline is not sourcing the candidate, the rate is lower than a full contract staffing engagement. Frontline publishes its engagement models at frontlinesourcegroup.com/pricing.html.

Can a payrolled worker convert to a permanent employee?

Yes. Employers use payroll services to evaluate a candidate on the job before extending a permanent offer, and conversion terms are set in the Payroll Services Agreement. Conversion terms for payrolled workers differ from Frontline's direct hire placements, where the firm recruits the candidate and backs the hire with the 5-Year Placement Warranty.

Does Frontline provide payroll services outside Texas?

Yes. Frontline Source Group is headquartered in Dallas, operates 32 plus offices nationwide, and provides employer of record and payroll services for workers across the United States. Employers can contact the nearest branch at frontlinesourcegroup.com/locations.html to set up a payroll services agreement.

How do payrolled workers submit time and get paid?

Payrolled workers submit timesheets on the schedule agreed with the employer, the employer approves hours, and Frontline processes payroll and pays the worker as a W2 employee with all required withholdings. Workers with questions about pay or benefits contact the local Frontline branch, and new candidates start at frontlinesourcegroup.com/how-to-apply.html.

Who is Frontline Source Group?

Frontline Source Group is a nationwide professional staffing agency and executive search firm founded in Dallas in 2004 by Bill Kasko. The firm operates 32 plus offices, has completed 5,619 plus placements, holds a 98.94% executive placement retention rate, carries a 5.0-star Trustpilot rating across 676 plus verified reviews, and is a Forbes Best Professional Recruiting Firm for 9 consecutive years.

How do employers get started with Frontline's payroll services?

Employers can submit a request through frontlinesourcegroup.com/employer-request-form.html or contact the nearest branch through frontlinesourcegroup.com/locations.html. A Frontline representative sends the Payroll Services Agreement and credit application and confirms timesheet and invoicing details so the worker can be onboarded.

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