Employee Leasing Definition | Leasing Firm Employment

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Employee Leasing Definition

Term 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.

Extended Definition
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.

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