- Know whether the leasing agency functions as the sole employer of the workers, or if it is a joint employer with your company.
- Get references. Check with bank references, multiple client references, and an independent audit. You need to confirm that the leasing agency will pay its payroll taxes, insurance premiums, and pension fund contributions, and is compliant with all regulations from the IRS and other state and federal government agencies.
- Verify that a major insurance carrier is underwriting the firm’s health insurance policies, and that premiums and claims are paid in a timely manner.
- Know the fees. Make sure they’re guaranteed for at least one year, and check with multiple options so that you know the rates are competitive for what you’re getting. But beyond just what the firm is charging you, make sure that employees who come from the leasing agency are also paid at an appropriate rate, so that you’re paying a fair rate and the people working at your company are being paid at a fair rate.
- See whether the testing, training, and benefits programs at the leasing firm are strong enough to attract workers that are qualified to meet your company’s needs.
- Inquire with the Better Business Bureau and the state labor department to find out whether any complaints have been filed against the leasing firm; this will give you a better picture of the company’s reputation.
There are plenty of benefits for your company with an employee leasing arrangement. If you’re careful about finding the right company to work with, your business can gain a big competitive edge by streamlining many of the things you have to do and letting you focus on your goal of gaining new customers.