Employee leasing is a type of human resource outsourcing (HRO) with which employers terminate their employees and “lease” them back from a staffing agency. While this model provides risk mitigation for business owners, it has fallen out of favor due to the competitive advantages of its successor, professional employer organization (PEO) – also referred to as co-employment.
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.
A PEO is a way to manage workers without the administrative complexity. It can help you with:
In a co-employment model, 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.
If you’re considering establishing a PEO relationship, here some questions to think over.
Consider a complete PEO 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.
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.
It depends on the PEO 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.
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
With a PEO, you can better compete for talent by offering competitive benefits usually available only to larger companies — including health insurance, commuter benefits, perks and discounts, and a retirement savings plan.
ADP’s PEO also has 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
ADP’s PEO allows you to work with HR professionals who know what other businesses like yours are doing to:
Leverage our experience to differentiate your business from your competition with ADP TotalSource.
See what others say about ADP TotalSource
We are very happy to be working with ADP and using ADP TotalSource because we are not only receiving excellent products and services, but have great people to work with.
ADP TotalSource helps us accomplish our goals by freeing up our team to do what is best for our customers and our company, and by providing the confidence that our HR needs are being met every day.
Sound Productions, LLC
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