Well, it’s not like going to Avis to lease a vehicle. It is a little more complex than that. Employee leasing companies help you have some of the benefits of larger companies by having a Leasing Company hire the employees and administer many of the HR regulations and functions.
According to Entrepeneur Magazine:
“Employee leasing is a contractual arrangement in which the leasing company, also known as a professional employer organization (PEO), is the official employer. Employment responsibilities are typically shared between the leasing company and the business owner (you, in this case). You retain essential management control over the work performed by the employees. The leasing company, meanwhile, assumes responsibility for work such as reporting wages and employment taxes. Your main responsibility is writing a check to the leasing company to cover the payroll, taxes, benefits and administrative fees. The PEO does the rest.
Employee leasing lets you add workers without adding administrative complexity. Employee leasing firms manage compliance with state and federal regulations, payroll, unemployment insurance, W-2 forms claims processing, and other paperwork. Some also offer pension and employee assistance programs.
By combining the employees of several companies into one large pool, PEOs,(Professional Employer Organization) can also offer business owners better rates on health-care and workers’ compensation coverage. The net effect can be significant savings of your time and money.”
Employee Leasing can be a great benefit for a growing company, which may not have the budget for a full-time payroll and HR Staff. Call me and we can chat about whether employee leasing is the right fit for your company.