Employee leasing: Difference between revisions
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#REDIRECT [[Professional employer organization]] |
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{{orphan|date=December 2010}} |
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According to the [[Division of Unemployment Assistance]] (DUA), "Employee Leasing Company" is defined as: |
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"an employing unit that contract with a [[client company]] to supply workers to perform services for the client company, provided, that the term "employee leasing company" does not include private [[Employment agency|employment agencies]] that provide workers to employers on a temporary basis or entities such as driver-leasing companies which lease employees to an employing unit to perform a specific service." Source: [http://www.mintz.com/newsletter/2007/EBEC_1003_Adv_RegELCs/index.htm Mintz.com] |
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The DUA defines "Client Company" as: |
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"an individual, association, partnership, corporation or other [[business entity]] that agrees to lease or is leasing its employees through an employee leasing company on a long term basis." Source: [http://www.mintz.com/newsletter/2007/EBEC_1003_Adv_RegELCs/index.htm Mintz.com] |
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The difference between a [[staffing firm]] (finds customers and supplies them with staff) and a PEO ([[professional employer organization]]) or an employee leasing company is that (outsources the HR-department for that customer sometimes including the staff). An other definition found at [[eHow.com]], "...temporary employees are by definition only assigned to a specific firm for a specific period of time." and "Leased employees perform their jobs at a particular company for an open-ended period of time and do not move around to difference work assignments." <Definition of a Leased Employee, by Chris Blank> |
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A third category is the "rent-an-employer"-form where an individual with a clinet finds an employer to act as middle man, providing an employment and salary to the person and an invoice to the client. This is called [[Umbrella_company]] in the United Kingdom and [[:sv:Egenanställning|Self-Employment]] in Sweden. |
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Essentially employee leasing combines all your employment fees (FUTA, FICA, etc.) into a single, monthly fee. The employee leasing company offers a plan to reduce HR/employee related costs to a lower rate than the employer currently has them. |
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By using an "umbrella" method, the employee leasing company takes on a large amount of small businesses and consolidates them to offer a lower medical cost than the employer currently has. As you can see the services provided by an employee leasing company is a recurring theme, as they take under control many costs of the small business (medical, employment taxes) and when working correctly, offers them at a lower cost. Employee leasing companies also help with understanding government rules and regulations and maintaining and reducing risk (reducing claims, improving workplace safety). |
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References: |
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{{Refbegin}} |
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[http://www.peocompare.com/employee-leasing-company-helps-5-things/ Peocompare.com] |
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[http://www.mintz.com/newsletter/2007/EBEC_1003_Adv_RegELCs/index.htm Mintz.com] |
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[http://www.rentanemployer.com Rent an Employer Portal] |
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{{Refend}} |
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{{DEFAULTSORT:Employee Leasing}} |
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[[Category:Human resource management]] |
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Latest revision as of 14:25, 6 June 2012
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