Leased Employees & Workers Comp

Leased Employees And Worker’s Comp

Busy companies are always looking for ways to work smarter, not harder. Dealing with Workers Comp is a time-consuming part of any business, and busy employers are always looking for ways to cut down on the tedious process and the mound of paperwork that goes with it. This is where employee leasing comes from.

Workers Comp

Workers Comp is required for all businesses throughout the country ) except in Texas.) This covers all employees should they have an accident on the job. It helps with covering lost wages for employees who are out of work due to accident or illness and provides medical benefits as well. Different industries have different rates that employers must pay each month to cover the worker's comp. When an employee does get hurt on the job, there are specific forms to be filed, deadlines to meet, and specific doctors to see. Businesses must make sure they’re always up to date with changing workers comp laws to make sure their employees are covered. Workers Comp is handled by the HR department of a company and requires extensive knowledge of policies and regulations to handle correctly.

Big companies may be able to send workers comp issues over to HR to handle and move on, but this may not be the case for small/mid-size businesses. Due to the time sensitive matter of workers comp claims, employers usually have to put all of their other responsibilities on hold to properly handle this claim. This is where working smarter, not harder, comes into play. Employers hire leasing agencies to manage the worker's comp details so they can get back to running their businesses.

Employee Leasing

Employee leasing was created to help companies with “behind the scenes” elements such as workers comp, payroll, and taxes. The agency handles the paperwork, phone calls, and deadlines, freeing up precious time for the employer. This is how it works: The leasing agency hires the employees of the particular business and then “leases” then back to their employer. Since the employees now technically “belong” to the leasing agency, they handle things like insurance and payroll.

This is also beneficial for companies who need to hire extra employees but can’t afford to spend the time and money on the administrative side to do so. Employees leasing firms allow employers to hire the help that they need without dealing with W-2 forms, unemployment insurance, and other paperwork.

With workers comp, the employer is responsible for handling all workers comp claims, pay for it, and make sure the company is up to date with all laws and regulations. This means devoting significant time to paperwork and following up on employees to ensure proper filing of the claim. For businesses who don’t have time to spend on paperwork and policies, leasing employees can be an ideal solution. When employers choose to lease their employees, they are also choosing to release some control. Since the employees now work for the leasing agency, the agency is in charge of aspects such as hiring and firing.

Like any significant business decision, it is essential to weigh the pros and cons of both workers comp and employee leasing. Is handing over some of the control of your employees worth the extra time you’ll gain by not having to manage them? Do you have the skills/knowledge/time/resources to properly handle workers comp claims? Your employees must have coverage, so the real question is: Do you have time to make sure it’s done correctly or would it be a smarter business move to use a leasing agency? For small/mid-size businesses, a leasing agency may be the way to go.

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