What is the definition of Direct Payroll Costs that an All Team USER must report?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. "Direct Payroll Costs" means the USER's share of federal social security taxes, federal and state unemployment taxes and contributions, disability insurance premiums, any other direct or indirect taxes which are based on wages, sales or receipts that may be levied and which are the legal obligation of an employer or provider of temporary employment services to collect and/or remit, and any insurance premium based upon payrolls (other than worker's compensation insurance premiums) which is a legal obligation of an employer to pay with respect to Wages on Temporary Employment Gross Billings derived from the placement of temporary personnel employees by USER in the operation of the Business except in the case of administrative personnel and in such case in accordance with information provided by USER.
- F. "Temporary Employment Gross Billings" means the amount billed by ATFC or its affiliates to Customers on behalf of USER pursuant to this Processing Agreement, for services provided by USER's temporary personnel employees.
- G. "Software" means the computer program that ATFC will require USER to use together with any updates, modifications, revisions, new versions and substitution of any new product thereof, together with all documentation, training manuals, and supplemental computer hardware. ATFC will train USER to facilitate the use of the computer program. Said computer program is designed for "front office" operations in the temporary staffing business, including payroll processing and client billing.
- H. "Wages" means the salaries or wages earned by USER's temporary personnel employees for work performed for Customers.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Direct Payroll Costs are defined as the USER's share of specific taxes, contributions, and premiums related to the wages of temporary personnel. These include federal social security taxes, federal and state unemployment taxes and contributions, disability insurance premiums, and any other direct or indirect taxes based on wages, sales, or receipts. These are taxes that are legally the obligation of an employer or provider of temporary employment services to collect and/or remit.
Direct Payroll Costs also encompass any insurance premium based upon payrolls (excluding worker's compensation insurance premiums) that an employer is legally obligated to pay. This applies specifically to wages on Temporary Employment Gross Billings derived from the placement of temporary personnel employees by the All Team USER in the operation of the Business. The exception to this is in the case of administrative personnel, where Direct Payroll Costs are determined in accordance with information provided by the USER.
All Team USERs are required to furnish all necessary payroll information, including Direct Payroll Costs, to ATFC in writing. This information must be provided promptly and in the format required by ATFC. Maintaining accurate and up-to-date records of these costs is essential for compliance and proper financial management of the All Team franchise.