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How do I start an employee leasing business?
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.
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.
Is employee leasing legal?
California: In California, both the employee leasing firm and its client are considered to have made workers' compensation insurance premium payments, and both are immune from a third-party suit, provided an employee leasing agreement has been executed and insurance coverage for the worker remained in effect throughout
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 enter into a co-employment arrangement typically involving all the client's existing worksite employees and sponsor benefit plans for the workers and provide human resources services to the client.
How does a professional employer organization work?
The acronym PEO stands for Professional Employer Organization. Pets work with small businesses to help them manage payroll-related taxes, certain human resources functions, access to benefits, and other employer-related administrative functions necessary to running a business.
Who should use a PEO?
Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: 401(k) plans. Health, dental, life, and other insurance. Dependent care. And other benefits they might not typically receive as employees of a small company.
Should we use a PEO?
The main reason many companies choose Pets is to provide benefits to their employees at a lower cost. However, it is important for the company to consider whether working with a PEO will result in long-term gains.
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