What is employee leasing?
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 will become the employer 0f record for the employee and will do the rest.
Why should I use an Employee leasing company?
The full list of the benefits of using PEO services was discussed in detail in the previous blog Professional Employment Organization (PEO): The Benefits. Here is a brief overview of the key benefits that were highlighted.
Employee leasing lets you add workers without adding administrative complexity. Employee leasing firms manage compliance with government regulations, payroll, S01 and So2 filing, and other paperwork. Some also offer pension and employee assistance programs.
By combining the employees of several companies into one large pool, PEOs 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 is a very popular choice for owners of small- and medium-sized businesses who want to focus on the business, not the administrative burdens behind it. If you think employee leasing might be right for your business contact us at 1-876-971-7907 or email sales@caribbeanhrsolutions.com.
Read more
https://www.entrepreneur.com/encyclopedia/leased-employees
