The office of General Counsel issued the following informal opinion on October 24,representing the position of the New York State Insurance Department. The client desires to provide health benefits to the individuals that it "leases". The inquirer wants to know whether the provision of such a benefit to individuals who are "leased" to New York employers would violate the New York Insurance Law. It is assumed that the following extract from Alcott Staff Leasing v.
Employee Leasing — How to Choose the Correct PEO for Your Business Whether you recently started your own company or you have been doing business for yourself for quite some time now, there comes a point when you may realize that you are spending a lot more time handling payroll, benefits, and other administrative hassles than you expected.
Not only can taking care of these administrative duties take up a lot of extra time, but ultimately it can have a negative impact on your productivity, which means that your revenue suffers, too.
Contracting with an employee leasing company is one way you can recover some of that lost time and get back to being productive and profitable. PEOs differ from other human resources outsourcing companies in the sense that they function as co-employers, taking over many of the decisions involved with administrating employees, not just the leg work.
For tax purposes, the PEO is the employer of record for your employees, which makes it much easier to submit the paperwork every year. Benefits of Employee Leasing Why should you consider contracting with an employee leasing company for your HR needs?
Here are just a few of the benefits: Rely on the experts to handle payroll, benefits, and more. As you have certainly discovered by now, the choices made by your human resources department impact your bottom line, just like your other business decisions. The experts at an employee leasing company can save you money by choosing benefits plans which provide more value for the price and hiring recruits that are able to deliver more value to the company from within.
Save time and money on legal matters. Unless your business is law, you are probably not a legal expert, and even if you are, your area of expertise may not be employment law.
PEOs have staff members who are trained specifically in this arena and can save you money on legal disputes by preventing costly mistakes and addressing issues when they do arise. Reducing your risk and liability is always beneficial, just make sure you have a clear understanding of the risks and liabilities you are still responsible for.
Free up your time and resume your normal job duties and focus on core competency. If you or your employees are currently tasked with handling HR responsibilities while still juggling other job duties, you can free up time by handing over the HR tasks to an employee leasing service.
This lets you get back to the core of your business where you and your other staff members are most productive and talented. Because of how highly involved the company will be in your affairs, it is essential that you select a provider that can function as a trusted business partner.
You may do better with a less comprehensive HR outsourcing solution which allows you to retain greater control over your operations, or a PEO may be perfect for you.
Only you can figure out which type of solution will best fit your needs. Here are some tips for selecting the best PEO: Check into the reputation of any PEO you are thinking using.
Find out how long the company has been in business, ask for referrals, and look for reviews online. Investigate the financial background as well to ensure the organization can meet its obligations. You can also find out whether the individuals who work within the organization are required to keep up their own certifications.
What services does the PEO offer?
Employee leasing can offer many employers a variety of benefits, including a reduction in net expenses. However, it is not a strategy without some risk. Employers should carefully choose a leasing company with a favorable track record that offers the services it desires. Employee leasing or contract staffing has been around since the mids. It all started with the Tax Equity and Fiscal Responsibility Act or TEFRA, the legislation that introduced significant tax benefits for any company that leases employees. Hiring an employee is a huge commitment for any company. Whether an employer is looking to fill a part-time or full-time position, there are quite a few time and monetary investments to make.
What about recruiting and other staffing needs? Make a list of features you are looking for and then see whether the PEO can fulfill those needs. What types of benefits plans are offered?
Do you have choices, or does the PEO offer one and only one solution? What kind of technology does the PEO rely on? Look for a PEO that can integrate its technological solutions with your existing solutions if possible.Employee leasing can offer many employers a variety of benefits, including a reduction in net expenses.
However, it is not a strategy without some risk. Employers should carefully choose a leasing company with a favorable track record that offers the services it desires.
The PEO takes responsibility for timely and accurate payroll delivery and the provision of such employee benefits as health insurance, retirement programs, even stand-alone dental and vision plans. Save on employee benefits and taxes – When an employee leasing company handles your employees, you are only required to pay a fixed monthly salary for every staff member.
You can add some performance incentives to motivate the staff, but it is the duty of the leasing company to provide the employees with health insurance, paid or sick leave.
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 . Save on employee benefits and taxes – When an employee leasing company handles your employees, you are only required to pay a fixed monthly salary for every staff member. You can add some performance incentives to motivate the staff, but it is the duty of the leasing company to provide the employees with health insurance, paid or sick .