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Employee Lease Agreement

Texas Employee Lease Agreement

Category:

Employment - Agreements - Leasing Employees

State:

Multi-State

Control #:

US-00038DR

Format:

Instant download

Description

An employee lease agreement is an agreement between a company and another party whereby the company agrees to contract out the services of some or all of its employees to the other party on specific terms and conditions.

The employees are actually employed by a third-party leasing company, but do their work for the company that contracts with the leasing company. In addition to relieving companies of the administrative responsibilities of managing a workforce, leasing employees can also save a company money by reducing the cost of benefits and insurance, to name just two areas.

This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

A leased employee is a person who receives a paycheck from one employer, a staffing firm, but is performing services for another company, a recipient company.

Employees Paid Through a Professional Employer Organization If your employees are paid through a Professional Employer Organization ( PEO ), you are not liable to report their wages. A properly licensed PEO is considered the employer of all leased workers for purposes of the TUCA .

When you join a PEO in most states you take their SUTA rate in that respective state. There are some states that are known as Client Reporting States, in which you keep your SUTA rate. Assuming that you are not in a Client Reporting State, then you are under your PEO's SUTA rate for each state you have employees in.

A Professional Employer Organization (PEO) is the new term for staff leasing company and is regulated by the department through Chapter 91 of the Texas Labor Code. The department issues licenses, regulates compliance with the law, and has authority to sanction a licensee for proven violations.

Contact the Civil Rights Division:Email: EEOintake@twc.texas.gov.Fax: 512-463-2643.Mailing Address: Texas Workforce Commission. Civil Rights Division. 101 E 15th St, Guadalupe CRD. Austin, TX 78778-0001.Physical Address: 1215 Guadalupe St, Austin, TX 78701.Call: 512-463-2642 or 888-452-4778 (in Texas only)

Texas is what's referred to as a PEO-reporting state for unemployment insurance.

The critical difference between an Employer of Record and a PEO: An Employer of Record is the full legal employer of a company's distributed workforce, while a PEO remains a co-employer.

A professional employer organization (PEO) is an organization that enters into a joint-employment relationship with an employer by leasing employees to the employer, thereby allowing the PEO to share and manage many employee-related responsibilities and liabilities.

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