Staff Leasing Definition: Staff leasing is a form of employment outsourcing, in which workers are officially employed by a professional employer organization, which is responsible for overseeing all HR-related functions, but who actually perform all work for the client company.
"Staff leasing", or "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 does the rest.
Staff leasing lets you add workers without adding administrative complexity. Employee leasing firms manage compliance with state and federal regulations, payroll, unemployment insurance, W-2 forms claims processing, 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.