Incoming search terms for the article:
- advantages and disadvantages of temporary employees
- How is the use of temporary employees different from employee leasing
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If you have temporary employees, and then lay them off, they can go to the unemployment office and file claims for benefits. This will cause your unemployment tax rate to go sky high for the next 3 years and you will have to pay high unemployment taxes on any and all your other employees for the next 3 years.
If you use a leasing company to get your employees, then lay them off, the leasing company gets stuck with the high tax rate instead of you. Also, any benefits that are given to employees have to be provided for by the leasing company.
The whole difference is the tax rate for unemployment taxes. Either you have the high tax rate or the leasing Company has it. So, if you get your employees from the leasing company, you will have to pay more for them.
Advantage of using a leasing company is the leasing company will have the high tax rate.
Disadvantage of usng a leasing company is that you will pay more for your employees.