Employee Leasing: Helps in Cutting Down Costs
When it comes to cutting down fixed establishment costs, there are many options available presently. Employee leasing is one such option that is gaining popularity with various types of business muddles.
The noteworthy feature of employee leasing lies in the role played by Professional Employment Organizations or PEOs. This is basically an arrangement between the employer and the PEOs. Under the terms of the agreement, it is the PEO who undertakes the responsibility of recruiting new employees. Similarly, they also take the responsibility of undertaking the payroll pertaining to the existing employees.
Once the agreement is signed between the employer and an employee leasing company, they are then leased out to the company hiring it. It should be noted that, though on papers they seems to appear under the payroll of the PEO whereas they function as per directions of the company that hires them.
Such an arrangement between the employer and the employee leasing company benefits the hiring company. For instance, it relieves the hiring company from witnessing time-wasting hassles. Not only this, they are also saved from facing a tortuous ordeal associated with the manner in which employees are to be dealt with on a daily basis. Besides these, the hiring companies are no longer required to shoulder the burden of administrative work. Normally, when these employees are under your direct payroll, it puts you under the scanners of statutory authorities. And, valuable portion of your time goes in taking care of state, local and federal laws. With the decision to take services of a PEO, making timely payments of their salary, insurance benefits, depositing quarterly tax etc. becomes the responsibility of PEO. It is because of these benefits, that scores of organizations are increasingly getting interested in giving this option a try. After all, it gives a chance to relax and have some peace of mind and concentrate their valuable time elsewhere in the organization.
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