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The markup for a person hired via a 'staffing company' goes to cover the fact that they've done some level of screening on the employee, may provide benefits, handle payroll, taxes, et cetera. It can also provide some level of protection between you and the 'employee', but lawyers will be happy to come after you anyway.
If you can locate, screen and handle the overhead for the employee, bring them on as a regular employee. (i.e. you already have the mechanisms in place). If you are a sole proprietor, it may make sense to let somebody else handle the paperwork.
My accountant actually has a company set up for leasing back employees. I find someone that I want to 'hire', so my accountant's company hires them and I lease the employee back. He is able to provide insurance, 401k, benefits to the employee and I don't have to deal with any of it. Staffing companies will do the same thing, but charge a higher markup since they typically find/screen the people. Also, if you want to hire a person full time from the staffing company you typically have to pay a fee to break them loose.
-b
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