Employee
Leasing Company
Small
and medium-sized business owners are finding
their resources are limited, especially for
non profit-generating personnel like payroll,
HR and benefits
management. An employee leasing company
lets employers outsource non-revenue generating
employee administrative duties so they can
focus on the concerns of their business.
Using
an employee leasing company creates what are
called leased employees. A leased employee
is a worker who is essentially rented on a
long-term basis from the employee leasing
company, which is responsible for employing
the worker, paying the wages, taxes, and providing
benefits for that employee.Under a typical
agreement, an employer contracts with an employee
leasing company or PEO, and then the employer
and the PEO become the co-employers of the
workers, with the PEO being the employer of
record for official purposes.
You
never lose control of your business; you just
let the employee leasing company deal with
the areas that do not allow your business
to grow and become more productive. There
are no more payroll nightmares, no more puzzling
HR questions and no more benefits headaches.
When you use an employee leasing company,
you get to do what you enjoy without dealing
with the red tape business generates. As the
employer of record of the leased employees,
the PEO company handles all of the employee-related
tasks and expenses, such as:
•
Paying and filing federal payroll taxes
• Paying and filing state payroll
taxes
• Paying and reporting on workers'
comp and workers' comp injuries
• State unemployment tax assessment
wage reporting
• Benefit claims handling
• Other human resources issues.
Through
an employee leasing company, employees may
gain access to benefits such as group health,
401(k) plans, life, vision and dental insurance
options. Keep in mind that employee leasing
companies vary significantly. Make sure you
look into the services available through the
providers that are licensed for your state.
An employee leasing company for your state
will be able to handle the laws, compliance,
and issues that are unique to your state.
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