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How do I set up an employee leasing company?
Register your business. Consult your state and county licensing boards to see if you need a license or permit to operate your employee leasing company. Locate professional office space. Create a niche in your serviceable area. Build and grow a business network. Find experienced, competent job candidates.
How do employee leasing companies work?
Employee leasing is a contractual arrangement in which the leasing company, also known as a professional employer organization (PEO), is the official employer. 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.
Why do some companies use employee leasing firms?
The leasing company can relieve the client of all payroll-related tax filings, including state and federal unemployment taxes and FICA taxes, state and federal tax withholding, 401K deductions, any other withholding.
Is employee leasing legal?
Leased Employees Law and Legal Definition. The leasing company, also known as a professional employer organization (PEO) enters into a contractual arrangement with the employers. However, the professional employer organization would remain as the official employer.
What is the difference between employee leasing and a PEO?
What is the difference between a PEO and an employee leasing company? Pets do not supply labor to worksites. Pets supply services and benefits to a business client and its existing workforce. These leased employees return to the staffing service for reassignment after completion of their work with the client company.
Who is the employer of a leased employee?
Leased employees, by definition, are employees that have been attained from a professional employer organization (PEO). The PEO is the official employer of the leased workers and handles payroll, tax reporting, and benefits. However, the employees complete the work for the leasing company or business owner.
What is a leased employee?
Leased employees are employees hired by client firms from employee leasing agencies for their own particular works. The leased employees will not be listed in the employers' pay rolls. The leasing company, also known as a professional employer organization (PEO) enters into a contractual arrangement with the employers.
Are leased employees common law employees?
Although they are not common-law employees of the organization for which they are performing services (the recipient employer), when certain conditions are met, the recipient employers must treat leased employees as their regular employees for qualified retirement plan coverage purposes.
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