What is Employee Leasing?

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Why employee leasing may be right for you

Running a small or midsized business today can be overwhelming. You tend to wear a lot of hats, which limits your time to focus on business goals.

Employee leasing, another term for being in a professional employer organization (PEO) relationship, is a way to manage workers without the administrative complexity. A PEO can help you with:

  • Payroll and tax administration
  • Employee benefits and insurance
  • Talent recruitment and management
  • Regulatory compliance and employee relations
  • Technology for managing HR and employee self-service

How PEO employee leasing works

With PEO employee leasing, you and the PEO share certain employment responsibilities. The PEO handles payroll, tax reporting, benefits and other administrative functions, while you maintain control of your business, including managing the work performed by employees.

Learn more about our PEO offering, ADP TotalSource.

What to look for in employee leasing

If you’re considering establishing a PEO relationship, here some questions to think over.

Will I get all the services I need?

With PEO employee leasing, consider a complete solution that includes recruiting and onboarding, payroll and tax compliance, workers’ compensation, time tracking and more, as well as accessing top-rated health and retirement benefits. Learn more about the services you can get from the ADP PEO.

How do I pay for these services?

Some PEOs charge per employee while others charge a service percentage. Choose a PEO that includes all of the services you need, like ADP TotalSource.

What responsibilities do I have as an employer?

It depends on the employee leasing services you choose. In a co-employment arrangement, you will still decide which employees to hire and direct the work of employees on a day-to-day basis. The PEO is your partner to help with HR issues, payroll, compliance, benefits and administration. Some PEOs, like ADP TotalSource, also help with strategy and culture.

What should I look for in a PEO and employee leasing?

Make sure you choose a certified PEO (or CPEO), which meets the highest standards and requirements from the IRS. And look for a PEO with flexible options, years of experience and clients in your specific industry, like ADP TotalSource.

Offer employees Fortune 500®-caliber benefits

You can better compete for talent by offering modern benefits usually available only to larger companies — including health insurance, commuter benefits, perks and discounts, and a retirement savings plan..

With our employee leasing PEO, we have the experience to help you understand your benefits plan and other options so you can make an informed decision.

Gain an edge with HR experts on your side

With employee leasing from ADP, you’ll be working with HR professionals who know what other businesses like yours are doing to:

  • Attract and retain talent
  • Stay compliant with federal, state and local employment laws
  • Gain efficiencies in payroll and tax processing

Leverage our experience to differentiate your business from your competition with ADP TotalSource.

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