Contract Payroll Administration - Shepherd Aero

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Contract Payroll Administration

For contract pilots provided by the customer

IRS penalties for common-law employees are strict and liability for payroll taxes and worker's compensation can be severe. However the cost of present and future compliance with the Pilot Records Improvement Act as well as the high cost of internal human resource provisioning make it expensive to hire a pilot for a single trip or on a trial basis.

Unless your contract pilots have a business license and can demonstrate tax filing compliance you are at risk unless the pilot is on the company payroll.

Kenmore Crew Leasing Inc., offers the following benefits to your flight department:

  • Actual cost + low flat fee ensures Low administration cost to your firm
  • Multiple payment methods - we accept VISA, MC, AMEX, AvCard as well as low cost EFT and ACH services
  • Flexible crew expense management and reimbursement systems with electronic reporting - no need to issue company credit cards or petty cash
  • Weekly payroll ensures crew members receive pay quickly and zero draw requests
  • Direct deposit eliminates delays and inconvenience for crew members
  • Domicile of employment, Washington State, features no personal income tax
  • Plush pre-tax employee benefit options available to compensation-savvy crew
  • Contract employee record-keeping and new hire processing services
  • Complete resume verification services and PRIA compliant background check on all new hires
  • CFR135.243(c) compliant drug testing program available
  • Pilot Record Improvement Act compliance (Requires response to future requests for 5 years from last employment date.)
  • Allows "trial run" temporary pilot hiring with easy transition to permanent employment

How it works:

  1. Company identifies contract pilot they wish to use
  2. Company signs up for service - Service agreement (basically specifies the company agrees to pay an agreed rate each time they use employee services and not to place them in danger or illegal circumstances)
  3. Company sends pilot contact information to us, we contact pilot, obtain all documents, complete records check and notify company when complete
  4. Company uses pilot as necessary (KCL can provide crew repositioning services as well). Pilot reports time on each Monday, company approves by Tuesday PM and payroll processed Wednesday, arrives to pilot bank on Friday via Direct deposit. Faster payment possible upon company request

For about $1,000 a year your flight department can be free from employer paperwork, a great way to keep liability removed further from your organization.