Staff Leasing is an agreement between two companies that allows one business to outsource and become eligible for group discounts in the insurance marketplace. Small business owners including general contractors and roofers can take advantage of a larger Staff Leasing Company’s service to reduce time and money spent on HR, Payroll and Employee administration as well as reduce the cost of insurance coverage. Staff leasing solutions offer many benefits to small and medium sized businesses and will help businesses that cannot secure affordable insurance get access to group rates. Businesses that have had many losses and a High Experience Rating, have trouble getting coverage because they are at a high risk to insure. Without Employee/Staff Leasing services these businesses may not be able to find an insurance plan.
Staff Leasing Agreement
The staff leasing agreement is known as a Client Services Agreement (CSA). The staff leasing company shares some employer responsibilities with the small business owner.
Some of these shared responsibilities include:
- Assumed responsibility/risk as a co-employer for workers
- Paying for Employee Wages and Taxes from own account
- Collecting, Depositing and Reporting Taxes
Employee/Staff Leasing Services
The three main employee/staff leasing services are Human Resources, Payroll and Workers Compensation.
Outsourcing Human Resources allows you to stay focused on your core business responsibilities. A dedicated human resource department will provide business owners with many benefits including the resources to stay in compliance with state/federal laws, recruit and train new employees and administration of employee benefit programs. With a large human resource department business owners have a team of experts that are able to stay up to date on new/changing laws, evaluate productivity and help to improve your business.
Outsourcing Payroll Services is more than just paychecks; Payroll services from a Staff Leasing Company are state-of-the art solutions that provide complete administration, tracking and processing. Additional benefits can include direct deposit, job-cost reporting, employee reports and payroll deductions.
Outsourcing Workers Compensation administration gives business owners a larger aggregate resource to buy insurance at reduced rates, administer employee claims and provide training to increase safety on-the-job. A small business can become eligible to purchase workers compensation insurance at group rates based upon the Staff Leasing Agreement.
Staff Leasing Law
Staff leasing companies are not temporary agencies. A staff leasing company is a licensed business that enters into a contract agreement with a business owner in order share the responsibility and risk of employing workers. The license and contract allow the staff leasing company to manage payroll, workers compensation, taxes and other personnel matters of the small business owner.
* The above terms and opinions are to be used for descriptive and reference purposes only. Please review your individual policy for full definitions, exclusions and endorsements. Should you have any questions, please contact your Broker or Agent.