Practice Test Geeks(CSP) Certified Staffing Professional Practice Test
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Contract Staffing & Billing Practices Flashcards

7 cards from real CSP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Contract Staffing & Billing Practices flashcards as text

  1. Which document formally establishes the terms of a staffing engagement between a staffing firm and a client company?

    Answer: Client service agreement

    A client service agreement formally establishes the terms, rates, responsibilities, and conditions governing a staffing engagement.

  2. The 'bill rate' in staffing is best defined as:

    Answer: The total cost charged to the client for each hour of temporary labor

    The bill rate is the total hourly amount charged to the client and includes the worker's pay rate, employer taxes, benefits, overhead, and the staffing firm's markup.

  3. A staffing firm's 'markup' percentage is calculated as:

    Answer: (Bill Rate / Pay Rate) - 1

    Markup = (Bill Rate / Pay Rate) - 1, expressing how much above the pay rate the bill rate is as a percentage of the pay rate.

  4. Which of the following costs is typically included in the 'employer burden' component of a staffing firm's bill rate calculation?

    Answer: FICA taxes and workers' compensation insurance

    Employer burden includes payroll taxes (FICA, FUTA, SUTA) and insurance costs (workers' compensation, general liability) that the staffing firm pays on behalf of the temporary employee.

  5. A 'temp-to-perm' conversion fee clause in a staffing contract is designed to:

    Answer: Compensate the staffing firm when a client hires a temporary worker directly

    A conversion fee compensates the staffing firm for its recruiting investment when a client company directly hires a temporary worker the agency placed.

  6. What does a 'not-to-exceed' (NTE) clause in a staffing contract specify?

    Answer: The maximum total cost or hours the client authorizes for a staffing engagement

    A not-to-exceed clause sets a cap on the total authorized hours or dollar amount for an assignment, protecting the client from unexpected cost overruns.

  7. Which billing practice involves the staffing agency invoicing the client on a set regular schedule based on approved time records?

    Answer: Periodic invoicing

    Periodic invoicing involves billing the client at regular intervals (weekly, bi-weekly) based on verified timesheets, which is the standard billing cycle for temporary staffing.