PAYROLL/LABOR in the ENTERTAINMENT INDUSTRY is what? When you call that labor company in some town in the USA, are you calling a PAYROLL COMPANY or a LABOR COMPANY. What is the difference? Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. A LABOR COMPANY may do payroll, but has the labor you are looking to use and may use a payroll company.
If you don't have the money in the bank to give the payroll company, the employees don't get paid. The employees are yours, the problems with the employees are yours. Don't hand the employees a paycheck for services rendered as you may have a problem, not the payroll company. The responsibility of the payroll company is to make sure the taxes and deductions are right and paid to the government. If you don't pay the payroll service, they have no responsibility to you or the employees. This is how they charge that 1 to 3 percent.
What is a PAYROLLING/LABOR COMPANY? Look for the next story to come.