1. What is a Temp Agency Markup Calculator?

Definition: This calculator determines the markup percentage that temporary staffing agencies charge on top of a worker's base salary.

Purpose: It helps businesses and workers understand the agency's fee structure and evaluate staffing costs.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Markup (decimal)
• \( S_{total} \) — Total salary charged (CAD)
• \( S_{base} \) — Base salary (CAD)

Explanation: The difference between total charged and base salary is divided by the base salary to determine the markup rate.

3. Importance of Markup Calculation

Details: Understanding markup helps businesses budget accurately and ensures fair compensation for temporary workers.

4. Using the Calculator

Tips: Enter the total amount charged by the agency and the worker's base salary. Both values must be in CAD and greater than 0.

5. Frequently Asked Questions (FAQ)

Q1: What's a typical markup for temp agencies in Ontario?
A: Markups typically range from 15% to 50%, depending on industry, skill level, and contract terms.

Q2: Does this include all agency fees?
A: Yes, the total salary charged should include all fees and additional costs beyond the base salary.

Q3: How can I negotiate a better markup rate?
A: Consider long-term contracts, bulk staffing needs, or working with multiple agencies to compare rates.

Q4: Are there legal limits to markup in Ontario?
A: There are no specific legal limits, but the Employment Standards Act governs temporary agency workers' rights.

Q5: What other costs might be included in the total?
A: Additional costs may include WSIB premiums, benefits, administrative fees, or profit sharing.