What is Employee Leasing
PEOshop.com works with PEO's who specialize in every different aspect of
employing people.
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Professional employer organizations (Employee Leasing) enable
clients to cost-effectively outsource the management of human
resources, employee benefits, payroll and workers' compensation.
Employee Leasing clients focus on their
core competencies to maintain and grow their bottom line.
Businesses today need help managing increasingly complex
employee related matters such as health benefits, workers'
compensation claims, payroll, payroll tax compliance, and
unemployment insurance claims. They contract with a PEO to
assume these responsibilities and provide expertise in human
resources management. This allows the employee leasing
client to concentrate on the operational and revenue-producing
side of its operations.
An
employee leasing company provides integrated
services to effectively manage critical human resource
responsibilities and employer risks for clients. A PEO delivers
these services by establishing and maintaining a co-employer
relationship with the employees at the client's worksite and by
contractually assuming certain employer rights,
responsibilities, and risk. |
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The PEO relationship
involves a contractual allocation and sharing of employer
responsibilities between the employee leasing company and the client;
this shared employment relationship is called co-employment. When
evaluating the employer role of either the PEO or the client, the facts
and circumstances of each employer obligation should be examined
separately, since neither party alone is responsible for performing all
of the obligations of employment. Each party will be solely responsible
for certain obligations of employment, while both parties will share
responsibility for other obligations. When the facts and circumstances
of a PEO arrangement are examined appropriately, both the employee
leasing company and the client will
be found to be an employer for some purposes, but neither party will be
found to be "the" employer for all purposes.
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As testimony to the
popularity of PEO's, employee-leasing firms managed more than 2.5
million workers in 1996, according to the Bureau of Labor
Statistics. |
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