When employee leasing is used,a firm signs an agreement with a professional employer organization.

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Employee leasing is a process in which a company signs an agreement with a professional employer organization (PEO) to outsource its human resource tasks, such as payroll administration, benefits management, and compliance with employment laws and regulations. The PEO becomes the employer of record for the leased employees while the actual work is carried out at the client's location.

When Employee Leasing Is Used,a Firm Signs an Agreement with a Professional