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How Employee Leasing Can Benefit Your Business August 9, 2019

Downtown Honolulu, Honolulu
How Employee Leasing Can Benefit Your Business, Honolulu, Hawaii

If you’re running a small business, your payroll costs are probably one of the trickiest areas to budget. After all, your business can’t thrive without talent, but you may not have the financial flexibility to hire as many full-time employees as you’d like. That’s where employee leasing can be helpful. Many employers aren’t aware of this option, so the guide below explains the process in-depth.

What is Employee Leasing?

Essentially, you’re hiring employees from a third party, known as a professional employer organization (PEO), without absorbing as many HR risks as you would with a full-time hire. For example, because the employee is technically an employee of the PEO, they’ll file their taxes as an employee of the PEO, not of your company.

How Does the Agreement Work?

employee leasingThe specific contract varies from PEO to PEO, but generally a PEO will oversee payroll, taxes, worker’s comp, and ensure you meet legal compliance for matters like COBRA and ERISA. Some PEOs charge on a per employee basis, while others will calculate their rates based on a percentage of payroll. Additionally, because a PEO employees a wide pool of people, they can often offer better insurance rates to their leased employees.

How Will It Benefit Your Company?

Employee leasing is particularly helpful for companies that have an unexpected labor shortage or are growing rapidly. In many smaller companies, an HR department is still a way down the road, which means that you have to parcel out HR responsibilities among other members of the company. Employee leasing reduces that burden and outsources many of the complicated HR tasks to experts, so you have fewer worries about messing up healthcare benefits or tax filing.


If you think employee leasing is right for your business, learn more about it today by contacting Talent HR Solutions. Based in Honolulu, they pride themselves on serving Hawaii with human resources outsourcing, employee leasing, staffing services, worker’s compensation, and more. To learn about their full range of services, visit their website, and call (808) 354-0498 to speak with a knowledgeable representative today.

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