| Employee Leasing
- The Concept |
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The administrative tasks involved in the management of employees
consume a large block of time for any company. This reduces the
time that could be spent on income producing tasks. Many companies
are recouping this "lost time" and using it more efficiently by
transferring responsibility for their employee administration
to outside sources. This is called "Employee Leasing".
Employee Leasing also reduces expenses. Leasing
companies can usually handle the administration af employees at
much lower costs to the company than the company itself can achieve.
Reducing expenses lead to profit increases for the company.
Employee leasing is rapidly gaining popularity throughout
the country. A client company transfers its employees to the books
of a leasing company, such as H.R. Servs., Inc., NV,
which then assumes the administrative responsibilities for these
employees. However, the client company maintains control of the
day to day work activities of the employees. In other words, the
executive of the client company will continue to be the boss but
without most of the headaches associated with the role.
Studies have shown that employee related problems
are an employer's single biggest headache. The problem
has grown as Federal, State and Local Governments have introduced
more and more regulations. While these regulations are designed
to benefit employees, they create additional strain on employers.
Some employers simply ignore the rules while others
are unaware of their existence. Some try to get around the requirements
by classifying workers as independent contractors. This approach
is not without risk. The government has guidelines for determining
the difference between employees and independent contractors..
Violations of these guidelines can lead to heavy fines.
Business owners and executives could operate
more efficiently if they could shift the responsibility for
coping with these regulations to an outside expert such as a leasing
company. This would free up the time that the executives devoted
to these problems. Freedom from worries about government audits
etc. will also reduce their stress levels. The leasing company
will then be responsible for:
- OSHA compliance
- EPA compliance
- state & local work place statutes
- withholding taxes
- administering benefits
- handling workmen's compensation
- handling unemployment insurance
- processing pay checks
- employee complaints
- fraudulent claims
- undocumented workers
Leasing companies will also administer health/dental benefits, retirement
plans and other programs that are usually handled by the personnel
division. In addition, our company H.R. Servs., Inc., NV,
Inc. offers assistance on sensitive matters relating to employees. We
also offer our clients a wide variety of standard forms that are
needed by all types of businesses as part of our service. These
extra benefits and the experience of our executives set us apart
from other leasing companies.
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