Employee Leasing - Business - Contractor Talk

Employee Leasing

 
Thread Tools Search this Thread Display Modes
Old 05-19-2010, 06:34 PM   #1
Geometrist

 
Warren's Avatar
 
Trade: framing/remodeling
Join Date: Feb 2005
Location: NE Ohio
Posts: 10,123
Rewards Points: 5,445

Employee Leasing


Do any of you guys have any experience with leasing employees. I am considering switching my business to this method. They will handle all of my payroll, wc, unemployment, and human resources. We will still retain all control over employees. The cost will be nearly the same as what we are dealing with now, maybe a few hundred dollars more per year. The real benefit is in streamlining all of those tasks that we all hate keeping track of. The software that this particular company employs is top notch. Everything from new hires to terminations can be handled with it. Just wondering what the "cons" are since I am about to dive in based on the "pro's".
__________________
I'd love to replace all the dumbness in this room but the budget is tight and the stupidity is plentiful!

Easy Gibson
Warren is online now  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 05-19-2010, 06:45 PM   #2
Fire up the BBQ
 
griz's Avatar
 
Trade: GC
Join Date: Nov 2009
Location: CA
Posts: 22,338
Rewards Points: 96

Re: Employee Leasing


Sounds like the way a Temp Agency operates. What are the conditions of the lease? Do you have to guarantee hours? Is it like calling the hall when you need guys or can you choose them? Is there any cost to the employee? If you find a guy you want to hire do you just send them to register at the leasing company? Sounds interesting.

Advertisement

griz is online now  
Old 05-19-2010, 06:47 PM   #3
Geometrist

 
Warren's Avatar
 
Trade: framing/remodeling
Join Date: Feb 2005
Location: NE Ohio
Posts: 10,123
Rewards Points: 5,445

Re: Employee Leasing


Its not a temp agency. I keep all my employees and they dont pay anything. They can do background checks on new hires and provide all the documents needed. By grouping a bunch of employers together, they can offer cheaper WC rates which helps offset their fee. The fee is based on a % of gross payroll.
__________________
I'd love to replace all the dumbness in this room but the budget is tight and the stupidity is plentiful!

Easy Gibson
Warren is online now  
Sponsored Links
Advertisement
 
Old 05-19-2010, 09:25 PM   #4
Member
 
Trim-man's Avatar
 
Trade: Interior Trim Contractor
Join Date: Mar 2010
Location: Indianapolis, IN
Posts: 66
Rewards Points: 75

Re: Employee Leasing


I looked into this a couple years ago. Another benefit is health care costs are lower, and they should have some better retirement plans available, due to the larger worker pool. It didn't work for my company because since I do Interior Trim my WC rate is much lower than other construction rates. Another WC issue was my personal rate, I currently am charged at a much lower rate since I don't actually perform any of the work. The other cost to consider is your unemployment rate. Again mine was much lower since I had almost no claims, that could be a really big deal now with some companies having a lot of lay-offs. Another thought, your employees will all have a new employer, might not matter at all, but if someone is considering a home refi, or new purchase it will require some extra explaining since time on the job will look like it is much less than it actually is. Overall I think it just depends on the company, it could be a great fit for some as I see it, not so much for me.
__________________
www.Kelley-Construction.net
Facebook
Trim-man is offline  
Old 05-19-2010, 09:40 PM   #5
Geometrist

 
Warren's Avatar
 
Trade: framing/remodeling
Join Date: Feb 2005
Location: NE Ohio
Posts: 10,123
Rewards Points: 5,445

Re: Employee Leasing


Quote:
Originally Posted by Trim-man View Post
I looked into this a couple years ago. Another benefit is health care costs are lower, and they should have some better retirement plans available, due to the larger worker pool. It didn't work for my company because since I do Interior Trim my WC rate is much lower than other construction rates. Another WC issue was my personal rate, I currently am charged at a much lower rate since I don't actually perform any of the work. The other cost to consider is your unemployment rate. Again mine was much lower since I had almost no claims, that could be a really big deal now with some companies having a lot of lay-offs. Another thought, your employees will all have a new employer, might not matter at all, but if someone is considering a home refi, or new purchase it will require some extra explaining since time on the job will look like it is much less than it actually is. Overall I think it just depends on the company, it could be a great fit for some as I see it, not so much for me.
I hear that in different states, this is handled differently. My unemployment rate stays the same. In Ohio, I am told that I continue on my account regardless of leasing. As for the WC, the group rate at the leasing company is slightly lower than our current group rate. Like I said before, as far as cost is concerned, its nearly a wash. Being able to streamline a lot of operations into a single entity really appeals to me.

They do offer some other benefit plans too which might help entice future employees. We are going to stick with our current 401k plan just because we like how its handled and their really isn't a cost savings by switching.
__________________
I'd love to replace all the dumbness in this room but the budget is tight and the stupidity is plentiful!

Easy Gibson
Warren is online now  
Old 05-20-2010, 07:01 PM   #6
Registered User
 
Tcreyn's Avatar
 
Trade: Employer consulting
Join Date: Apr 2010
Posts: 5
Rewards Points: 10

Re: Employee Leasing


Feel free to call me if you would like to discuss specifics. There are many factors to a PEO a.k.a Employee Leasing company. They may be a great fit for you and your company. I've been in the insurance and employee leasing industry for twenty years. I can ask a few questions and provide guidance on the company and their reputation as it relates to service and/or pricing.

Troy Reynolds
(561) 951-4315
Tcreyn is offline  
Old 05-20-2010, 07:11 PM   #7
Member
 
Trim-man's Avatar
 
Trade: Interior Trim Contractor
Join Date: Mar 2010
Location: Indianapolis, IN
Posts: 66
Rewards Points: 75

Re: Employee Leasing


Quote:
Originally Posted by Warren View Post
I hear that in different states, this is handled differently. My unemployment rate stays the same. In Ohio, I am told that I continue on my account regardless of leasing. As for the WC, the group rate at the leasing company is slightly lower than our current group rate. Like I said before, as far as cost is concerned, its nearly a wash. Being able to streamline a lot of operations into a single entity really appeals to me.

They do offer some other benefit plans too which might help entice future employees. We are going to stick with our current 401k plan just because we like how its handled and their really isn't a cost savings by switching.
Had this been my situation I would have done it in a heartbeat.
__________________
www.Kelley-Construction.net
Facebook
Trim-man is offline  
Old 05-20-2010, 09:29 PM   #8
Grampy
 
Osito's Avatar
 
Trade: Remodel & Repair Contractor
Join Date: Mar 2008
Location: Central Florida
Posts: 173
Rewards Points: 174

Re: Employee Leasing


Ran into a problem here in Florida. The Leasing Company has not paying the taxes to the state or the feds. They came back on us, according to the gov't the employees worked for us, do to the fact that we controlled the employees. Bottem Line we paid taxes twice. Lost our **s. We had to file suit against the leasing company. They filed bankruptcy. We did get .20 on the dollar. Principals got indicted. Still no trial, going on 4 years.

So Beware!!!!
__________________
"It only cost a little more to go first class"
Osito is offline  
Old 05-20-2010, 09:34 PM   #9
Pro
 
tommytwo's Avatar
 
Trade: Remodeling and Home Performance
Join Date: Mar 2009
Location: MN
Posts: 122
Rewards Points: 79

Re: Employee Leasing


I've been leasing employees for about three years. Sounds like what you are looking at is the same other than unemployment (I don't even have an account.) I control the schedule and wages. I have to call in hours once a week, and then they take care of payroll and wage reports. If I find someone I want to hire, I send them up to the office to fill out an application and take a piss test. If I'm looking for help, they will go through their pile of applications too, but that hasn't worked out real well for me.

I sometimes wonder if I could save some money by bringing all of that in-house, but every time I think about it, I decide that I'd rather apply my time to other aspects of the business.
tommytwo is offline  
Old 06-01-2011, 04:40 AM   #10
Registered User
 
jenvic's Avatar
 
Trade: ewfewr
Join Date: May 2011
Posts: 3
Rewards Points: 10

Re: Employee Leasing


Employee leasing offers a relief from the effort of employees and operational management. It is also responsible in the employee selection and recruitment.So for me, employee leasing is a good idea.

Advertisement

jenvic is offline  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Does Your Company do Employee Reviews? constructonomics General Discussion 14 04-12-2013 04:43 AM
Job Scheduling | Employee Insurance Problems CopperSmith Business 3 05-11-2010 10:39 PM
Does your company do employee reviews? constructonomics Business 0 09-30-2009 10:29 PM
Illinois Employee Classification Act, New Get Tough Policies Ed the Roofer Business 0 02-13-2008 04:05 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?