CSP Contract Staffing & Billing Practices

Question 1

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

Accepted Answer

Client service agreement

Answer

Job order form

Answer

Employee handbook

Answer

Background check authorization

Question 2

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

Accepted Answer

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

Answer

The hourly wage paid directly to the temporary worker

Answer

The staffing firm's net profit per placement

Answer

The overtime premium paid to workers after 40 hours

Question 3

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

Accepted Answer

(Bill Rate / Pay Rate) - 1

Answer

(Pay Rate / Bill Rate) x 100

Answer

(Bill Rate - Pay Rate) / Bill Rate

Answer

Pay Rate + Employer Burden

Question 4

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

Accepted Answer

FICA taxes and workers' compensation insurance

Answer

Client's facility overhead

Answer

Worker's personal income tax withholding

Answer

Client's internal HR department costs

Question 5

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

Accepted Answer

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

Answer

Penalize clients who terminate temporary assignments early

Answer

Allow workers to convert from part-time to full-time status

Answer

Cover overtime costs when temporary workers exceed 40 hours

Question 6

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

Accepted Answer

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

Answer

The minimum number of hours a temporary worker must work per week

Answer

The overtime cap for individual workers on assignment

Answer

The maximum number of workers a staffing firm can supply

Question 7

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

Accepted Answer

Periodic invoicing

Answer

Milestone billing

Answer

Retainer billing

Answer

Flat-fee billing