Employee Leasing Definition
Individuals officially employed by a leasing firm, but recruited and trained for a client company, are called leased employees. For employment tax purposes, the leasing agency is considered as the employer for such workers.
Workers officially hired by a professional leasing agency, which oversees all the administrative aspects of HR, who offer services to a client company, are called leased employees. Although leased employees offer services to the client company, they are formally employees of the third party leasing agency. Leasing employees frees a company from administrative responsibilities associated with workforce management and enables saving in areas like employee insurance and benefits.