What is Employee Leasing?

Professional employer organizations (PEOs) formerly known as "Employee Leasing" enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers' compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.

Businesses today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations.
A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining a co-employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities, and risk.

You can read more about employee leasing and why it's good for small businesses at these websites:

Jerry Rhodes and Associates

National Association of Professional Employer Organizations