Nearshore Staffing Inc
Florida based S-Corporation Tax ID: 81-5370406
2221 Cypress Island Drive Unit 206
Pompano Beach, Fl 33069
954-464-6330
This document serves as a clarification of the working relationship between American clients and Nearshore Staffing Inc. And, to provide details regarding our services, pricing, invoicing, etc.
NOTE: Nearshore Staffing Inc is the name of our USA S-Corp. However, we are not a recruiting or staffing agency.
We are a USA/Dominican Republic human resources and payroll company.
NOTE: We do not accept payment by normal check sent in USA email. Only electronic payments are accepted.
Pricing and Terms Agreement
This agreement is designed to clarify our business model, pricing, payment, relationship, responsibilities and other components of doing business.
“Client” or “American Client” refers to the company which NearShore Staffing Inc is providing the services outlined within this agreement and signs this document.
“Worker or Workers” are job titles used on this agreement to cover individuals who Nearshore Staffing sourced in the Dominican Republic for client to interview and select. Nearshore Staffing then hires and payrolls the workers through our Dominican human resources company to work as Client's remote based payrolled employees.
A worker is legally employed and payrolled by Nearshore Staffing, there is no legal connection between client and worker.
However, the relationship is the same as if the worker is a normal career employee of the client.
Examples are recruiting assistants, recruiters, sales support, customer and technical support staff, virtual assistants, bookkeeping and accounting, etc.
Nearshore Staffing Inc is a USA based S-Corp. We own a separate company in the Dominican Republic to recruit, hire, provide HR services and payroll people. Our Dominican company also provides local supervision, computers, internet etc.
NOTE: We are not an offshore outsourcing company. We are not an RPO, call center nor a virtual assistant firm. They hire people as their employees to rent out to American companies as extra/expendable staff.
Our business model is to provide people in the Dominican Republic who we payroll to work for the U.S. client as remote & lower cost team members fitting in same as career employees, yet without any legal employer/employee connection.
Video call tools such as Zoom or Teams enable the American Client and Dominican Worker to see and talk to each other Live same as if sitting next to each other. And, the American Client can use screen sharing to show Dominican Worker the client’s computer screen to explain work instructions.
USA Client > Nearshore Staffing in USA > Our HR company in DR > Worker in DR
Same as when hiring employees in the USA through an HR partner company the Client has authority and is responsible for designing retention plans such as paid time off, sick days, vacation days etc. Most clients allow Dominican staff to take off American holidays, annual evaluations and if justified client can offer raises and promotions.
None of these retention options are required but Workers in all countries know if they are being treated well or not. Being Client will invest time and money into training Dominican based Workers and not want to lose good people, we encourage Client to consider creating retention ideas that motivate good people to being loyal and wanting to work long term for Client.
Client is required to provide training, tools and personal oversight to set up Dominican based Workers for success, same as with USA based staff.
An example is using Zoom video call with screen sharing to replicate working next to your DR based staff and use screen sharing to show quality work instructions.
Relying too much on communication by email and messaging is a mistake that causes failure. Video call tools should be used to replicate a leader and worker being next to each other same as if their desks were close and where communication is live and clear.
What is a Permanent Contractor? In the USA companies may want to hire contractors to work same as long term employees because this can be less expensive than providing benefits and payroll to W2 employees.
However, in the USA the IRS can audit companies and if contractors are being used and managed same as W2 employees the IRS can force companies to convert contractors to employees. And, pay fines, back taxes, benefits etc.
An example is if a corporation in USA hired a contract recruiter and managed their schedule and activity numbers the IRS would perceive this as an Employer/Employer relationship and could become a serious problem.
These IRS rules that govern long term use of contractors only apply to USA citizens, not to remote workers hired through an HR company in the Dominican Republic.
This means a remote worker from the DR can fit in and work long term same as a career employee where the IRS rules do not apply. If your company hired a contractor directly who worked remote from another country you would be required to maintain a W8 tax form for IRS records. If the contractor is employed by an HR/payroll company in another country there is no direct legal connection between your company and the contractor.
The money flows from your USA corporation to our USA corporation. Our USA company outsources to our Dominican HR company that hires the Worker.
There is no flow of money from your company direct to the Dominican company nor to the Worker and this explains how and why the Worker can fit in same as a career employee without any requirement by your company to maintain any USA tax records such as W8.
NOTE: If your plan is to use people from Dominican Republic for jobs such as customer support, recruiting or personal assistant, the people come with the basic skills for your company leadership to take over and train to perform your unique job descriptions.
An example is customer support at Verizon is different from customer support at Amazon. Although the basic skills are the same, all companies must train people on their products, services and internal systems.
For jobs such as accounting, we conduct searches in the Dominican Republic to find people with the skills the American client requires, schedule Zoom interviews then hire and payroll the people the American client selects.
We cannot guarantee that we can always find qualified people in the DR with Client's specific requirements. What we can do is work a search process and attempt to find qualified people for Client to consider.
Payroll Process:
Step 1 - Using March as a sample starting month in the final week of February Nearshore Staffing wires money from our USA bank to our Dominican bank and HR company. This is to fund March payroll for the worker set up to work for you/Client.
Step 2 - On April 1st Nearshore Staffing will send an invoice for the worker's payroll in March. Any unpaid days off are deducted. We offer an hourly option and a monthly salary option. Example, you may prefer to track a worker's time or you may not want to be burdened with tracking work hours and prefer a fixed monthly salary same as a corporate employee in the USA.
A calculation for salary is to agree on an hourly bill rate and multiply this by 8 hours per day x 21 work days per month. When 12 months are averaged the number of work days is 21.
The choice is yours.
The invoice is due paid on the 15th or net/15. To clarify this means we are fronting the money to cover worker payroll for a month such as March, send the invoice to client company for March on April 1st which is due paid by April 15th
Step 3 - On the final day of a month we pay the workers. If this is over a weekend we pay them on the Friday. We also pay on the 15th of each month.
Step 4 - If you plan to pay a worker a bonus or commission and inform us/nearshore staffing prior to end of a month, we can add the money to the wire and FRONT this money to cover the bonus or commission. Nearshore Staffing Inc would add this into the next month invoice so we are reimbursed.
Step 5 - Nearshore Staffing Inc does not take any % or cut of commissions, bonuses or raises. We pass these rewards through to the Worker 100% so our margin remains the same.\
There is no long term contract. You/Client go into this wanting long term success same as when hiring a USA based employee while also being able to cancel or terminate at any time.
What happens if Client is late at paying an invoice? Using May as a sample month the invoice is due paid by June 15th. If Client does not pay by June 25th Nearshore Staffing Inc may be forced to cancel or layoff the Worker until the invoice is paid.
We can front the money to cover payroll for 1 month and if Client pays on time this means we are fronting payroll for 45 days. If Client does not pay on time the risk is going into a 2nd month without the 1st month being reimbursed which is not acceptable.
Dominican Republic payroll taxes and health insurance: Our Dominican HR company handles payroll taxes for all people hired and assigned to American clients. There is limited free medical care that is provided by the government. Most people in the DR supplement the government provided medical care with their personal/private health insurance.
The cost of private health insurance is significantly less than USA. An example can be full health insurance that covers a family for $200 per month.
Client can decide if you want to increase billing and pay rate to enable worker to afford private health insurance. A suggestion is to evaluate worker after 1 year and if positive offer a raise to monthly income that is enough to cover private health insurance.
Client can choose a USA phone option while we can offer suggestions. Example is certain clients may already use phone services such as Ring Central where it is easy to add a remote worker in the DR to the system and set up a USA/VOIP phone number same as with USA based employees.
The USA Client and Dominican Worker are allowed to discuss raises or bonuses so the USA client can confirm and verify the Dominican Worker did receive the full raise or bonus. We do not take any percentage of raises or bonuses, our margin remains the same.
Same with commissions.
The workers sign an internal contract with Nearshore Staffing and our Dominican HR company that forbids them from discussing confidential internal information such as their internal pay, our payroll process or other information that is confidential and internal to our company.
Example: Assume the American Client agrees to a billing rate. Within this billing rate Nearshore Staffing Inc makes the decisions regarding pay rates that are offered to workers and accepted. In fact, these numbers are agreed to prior to interviews with Client. We must get candidates to agree to our salary offer before they give us permission to submit for interviews.
Only when a worker accepts a pay rate are they submitted to the American client for interviews. This ensures the worker accepts a pay rate that is affordable within the billing rate the American client agrees to.
Nearshore Staffing Inc operates on the marginal difference between the pay rates for workers and the billing rates American clients agree to.
The only number and information the American Client needs to focus on is the total billing rate while Nearshore Staffing Inc. handles all pay/tax details with the worker on our side of the relationship. Nearshore USA does not disclose internal numbers and the Dominican workers sign our agreement that forbids them from working direct for client without our consent and/or sharing our internal information and numbers with Client.
To clarify, if we quote $15 per hour this covers everything and that is all you as the client need to concern yourself with.
Converting Workers from Nearshore Staffing Inc to work direct for Client: is not a staffing agency. We do not offer temp to full time hiring options. Client cannot hire Dominican workers directly as employees or contractors. The business model is for client and Dominican workers to work together same as employer & employees while Nearshore Staffing Inc remains in the middle as the HR/payroll provider.
However, if Nearshore Staffing Inc ceased to perform our business, service and operations, failed to cover payroll or other otherwise fail to produce our human resources and payrolling service Client can decide on another payrolling option and continue directly with the Workers.
The purpose of this segment is to prevent a scenario where client trains people for important jobs where if Nearshore Staffing Inc ceased operations and failed to provide HR and payrolling this could cause significant damage to the client and workers.
To be clear, if Nearshore Staffing Inc remains in business and provides the HR and payroll services client is not allowed to bypass Nearshore Staffing Inc and work directly with the workers. Workers do sign a separate contract with Nearshore Staffing Inc that forbids this.
Schedule and Shifts: Common schedules are Monday through Friday day or evening shift and 40 hours per week. Time zones should be considered when creating a daily work schedule.\
The Dominican Republic is same time zone as eastern USA. However, the DR does not move time forward or back 1 hour for daylight savings time. Th Dominican worker can adjust their work hours to match USA time zone changes.
Pricing:
Client can choose a negotiated hourly rate x 8 hours per day x number of days worked per month.\
Or, Client can choose a fixed monthly salary that is based on an hourly rate x 8 hours per day x an average of 21 workdays per month. This is comparable to hiring a salaried worker versus an hourly worker. Certain clients may prefer salary as this is easier to track. 21 work days per month is the average of all 12 months in a year.
We do not list pricing here on this agreement as this is discussed, agreed to and confirmed direct with client based on the job description.
The hourly rate or monthly salary can be discussed, agreed to and confirmed by email.
Nearshore Staffing Inc will recruit various candidates in the DR for Client to interview and consider each who have different education and job experience thus their salary requirements may be different.
Nearshore Staffing Inc. will include the candidate bill rate on resumes so Client knows the bill rate for each candidate.
Nearshore Staffing Inc. never increases price or billing rate unless client company decided to offer a raise to the worker. An example is if you as the client decided to give your Dominican based worker a $1 raise, Nearshore Staffing Inc would front the money to add this raise into the worker’s pay. Your company as the client reimburses our American company within the next invoice.
We do not increase price or billing rate, you as the client are in control over billing rate based on decisions to offer raises to workers.
To Clarify, the Nearshore Staffing Inc margin remains the same, always. If American client offers raises to hourly or salary pay, Nearshore Staffing Inc passes this through 100%.
Pricing includes the following components:
A – Worker as the baseline value. They are college educated, bilingual English & Spanish and have suitable job experience. (Nearshore Staffing is constantly recruiting to maintain a inventory of people as replacements or to add staff)
B – HR and payrolling through our Dominican payroll company
an company. This includes tax paid from our Dominican company to the Dominican government.
C – Computer + back up power supply
D- High speed internet
E – We can suggest various USA phone options for client to consider including texting. Each company in USA is different, some have their own VOIP phone systems like Ring Central or Vonage. If you do not already have your own phone system that includes talk and texting, we can suggest options.
F – Local supervisor who assists with managing the Dominican based workers. The cost of our HR manager who partners with you is built into the billing rate.
It is important that client be aware that all these items are components to a package and perceiving the full package is the proper way to understand the full value and not focus only on the worker.
Nearshore Staffing Inc encourages Client to consider creating a vacation plan after worker achieves 6 months or more and there has been a satisfactory evaluation.
Being the plan is to retain the Dominican staff long term same as USA based employees it is wise to design a reward, incentive and motivational long term job plan.
Tracking of extra rewards and compensation such as bonuses and raises are handled between client and worker. Same as when hiring employees through an HR company in the USA any evaluations, metrics and rewards are handled privately between client and worker. If there are to be bonuses or raises client would inform Nearshore Staffing so we can adjust worker pay and the client invoice.
Non- Disclosure and protective language: Client may enable “worker” to access resources such as an internal customer database or platforms such as LinkedIn to work with. Other examples are access to a client’s financial books for jobs such as accounting and bookkeeping. The worker will not share any confidential passwords with others nor use passwords provided by the Client for any work other than tasks for the Client.
The worker will not use client’s proprietary information such as customer lists for any work other than for the client.
Worker shall be recruited specifically for and dedicated to Client and will not perform work for any other client.
Client may require NearShore Staffing Inc. to sign a non-disclosure agreement. If the language agreeable, NearShore Staffing Inc will sign client’s NDA.
Termination: Client can terminate this agreement and cancel workers at any time. Should Nearshore USA decide the relationship is not compatible we must submit notice of cancellation with American client 30 days prior to end date, this giving American client 30 days notice of cancelation.
Non-Solicitation: Client agrees not to solicit workers who are provided by NearShore Staffing Inc to work directly for Client even after cancellation. An example is a worker is not allowed to resign and then work directly for Client, thus cutting out Nearshore Staffing Inc.
It is possible that a worker may attempt soliciting Client to work for directly. Client agrees to reject such solicitations and inform NearShore Staffing Inc of such activity.
Nearshore Staffing Inc nor any of our internal staff shall attempt recruiting and hiring employees of the Client.
Activity Metrics:
Nearshore Staffing Inc is not a consulting firm, call center nor a recruitment process outsourcing company. We do not sell projects with deliverables or metrics. Our role is to provide Dominican based workers as remote and lower cost staff - and be the legal HR/payroll provider. Each client designs their own work goals and activity metrics which are handled directly and privately with the workers.
Client Company:_________________________________________
Executive Name:___________________________________________
Title:__________________________________________________
Signature:___________________________________________________
Date:_____________________
Nearshore Staffing Inc: David Fogg – owner/President
You can print, sign, scan and email a copy to DJ@Nearshore-USA.com