Which of the following statements is true about employees of employee leasing companies?
A) They have employment contracts and are not at-will employees.
B) They increase the costs on benefits and HR administration on the part of the employer.
C) They are supplied by contract to employers with jobs.
D) They can be regarded as self-employed for IRS purposes.

Question

Quizplus · Accepted Answer

Employees of employee leasing companies are supplied by contract to employers with jobs. These employees are not directly hired by the employer but by the leasing company that leases their services to the employer. This arrangement can help employers save on HR administration costs as they do not have to directly hire these employees, but only pay the leasing company for their services. Employees of employee leasing companies are not necessarily at-will employees, but it depends on the terms of their contract with the leasing company. They are also not self-employed for IRS purposes as they are considered employees of the leasing company.

Which of the Following Statements Is True About Employees of Employee