CSP Contract Staffing & Billing Practices 2

Question 1

Which of the following best describes a 'direct placement' fee structure commonly used by staffing firms?

Accepted Answer

A one-time fee, typically a percentage of the placed candidate's first-year salary

Answer

A flat hourly rate billed weekly until the position is filled

Answer

A monthly retainer paid regardless of whether a placement is completed

Answer

A per-resume fee charged for every candidate submitted

Question 2

A staffing agency charges clients $28/hr and pays workers $20/hr. What is the markup percentage?

Accepted Answer

40%

Answer

28.6%

Answer

71.4%

Answer

8%

Question 3

Under the Fair Labor Standards Act (FLSA), who is responsible for ensuring that temporary workers receive at least the federal minimum wage?

Accepted Answer

Both the staffing agency and client company as joint employers

Answer

The client company exclusively

Answer

The staffing agency as the sole employer of record

Answer

The temporary worker's union if applicable

Question 4

What is the primary purpose of requiring client signatures on worker timesheets before invoicing?

Accepted Answer

To verify hours worked and create an agreed-upon basis for the invoice

Answer

To satisfy IRS payroll documentation requirements

Answer

To transfer workers' compensation liability to the client

Answer

To confirm the worker's employment eligibility under I-9 rules

Question 5

A 'retained search' billing arrangement means the client pays:

Accepted Answer

An upfront fee or installments regardless of whether a placement is completed

Answer

Only after a successful hire starts working

Answer

A monthly subscription for unlimited job postings

Answer

A per-resume fee for every candidate submitted for review

Question 6

When a client contests a staffing agency's invoice, what is generally the most appropriate first step for the account manager?

Accepted Answer

Review the signed timesheets and contract terms to identify discrepancies

Answer

Immediately escalate to legal counsel and threaten collections

Answer

Send a corrected invoice without discussing the dispute

Answer

Issue a full credit memo and re-bill the following month

Question 7

A staffing firm's 'gross margin' is most accurately calculated as:

Accepted Answer

(Bill Rate - Pay Rate) / Bill Rate

Answer

Total revenue minus total worker pay rates

Answer

Pay Rate divided by Bill Rate

Answer

Total placements multiplied by average bill rate