What are Leased Employees?
Leased employees are workers who are hired through a special kind of company called a Professional Employer Organization, or PEO in short. This setup is really helpful for businesses that want to focus on their main work without worrying too much about complicated HR tasks. The professional employer organization is the official boss of these workers. It handles all the tricky stuff, like making sure they get paid, sorting out their taxes and benefits, and dealing with legal things like workers’ compensation insurance. All the paperwork and rules that come with having employees are covered here.
Geeky Takeaways:
- The business that needs these workers, called the client company, just pays the PEO a fee.
- This fee covers the workers’ pay, their benefits, and a bit extra for the Professional Employer Organization services.
- Even though these workers are paid by the PEO, they actually work at the client company and do their day-to-day jobs there, under the management of the client company.
Table of Content
- Who is the Employer of a Leased Employee?
- Difference Between Leased Employees and Contract Employees
- When should Employee Leasing be used?
- Benefits of Leased Employees
- Risks of Leased Employees
- What can HR leaders do to Incorporate Leased Employees into their Teams successfully?
- Frequently Asked Questions (FAQs)
Contact Us