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  2. Insurance Terms Starting With E

Employee Leasing Company

What is an Employee Leasing Company?

An employee leasing company is a specialized firm that offers comprehensive employment services to other companies. The leasing company provides employees to client businesses as contractors or third-party workers. The employees assigned to the client company take direction and instruction from the client company. However, the leasing company remains the legal employer, handling tasks such as payroll administration, tax withholding, and workers' compensation. In this arrangement, the client company gains access to a skilled workforce without assuming the legal responsibilities associated with employment.