1. What is a Temp Agency Salary Calculator?

Definition: This calculator estimates the total salary cost when working through a temporary staffing agency, accounting for the agency's markup.

Purpose: It helps both employers and temporary workers understand the full cost of temp labor, including the agency's fees.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( S \) — Total salary cost (USD)
• \( H \) — Hours worked (hours)
• \( R \) — Base hourly rate (USD/hour)
• \( M \) — Agency markup (decimal)

Explanation: The base pay is calculated first (hours × rate), then increased by the agency's percentage markup.

3. Importance of Temp Salary Calculation

Details: Understanding the full cost helps businesses budget accurately and helps workers understand what portion of their pay goes to the agency.

4. Using the Calculator

Tips: Enter hours worked, base hourly rate, and agency markup (default 0.20 for 20%). Hours and rate must be > 0, markup must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical agency markup?
A: Markups typically range from 15-30% (0.15-0.30), with 20% being common for many temp agencies.

Q2: Does this include taxes or benefits?
A: No, this calculates gross pay before taxes. Benefits may or may not be included depending on the agency agreement.

Q3: How do temp workers get paid?
A: Workers receive the base rate (R), while the agency keeps the markup portion (R × M) as their fee.

Q4: Can I use this for salaried temp positions?
A: For salaried positions, convert the salary to an hourly equivalent based on expected working hours.

Q5: Why do agencies charge a markup?
A: The markup covers the agency's costs for recruitment, payroll processing, and profit margin.