Employee Leasing

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dezwitinc

dezwitinc

Senior Member
Location
Delray Beach, FL
We are considering using an employee leasing company to handle our payroll, taxes, comp, etc.
Does anyone from Florida have any experience with these companies or any recomendations?
I am not talking about companies that supply electricians, I am looking for companies that just handle all the HR, taxes, etc.
Thanks
 
They are both expensive and very cost effective.

In a lot of ways, you have to decide what you want to spend your time doing. You probably cannot take care of these things as economically as someone who does it for a living can.

Say your time is worth $100 per billable hour.

Is it better for you to spend $500 per week of that time doing what someone else can do better and only charge you $200?

There are some other issues as well. By leasing the employees, I understand you have more flexibility with certain kinds of benefit plans that you would not have otherwise. For instance, you can have a much more generous benefit plan for yourself if you are the only employee of the company without running a foul of the IRS and its "non-discrimination" rules, because the rest of the workers are not actually employed by your company. I am not sure this is true, but I have heard it so stated a while back by some people who actually did lease employees.
 
dezwitinc said:
We are considering using an employee leasing company to handle our payroll, taxes, comp, etc.
Does anyone from Florida have any experience with these companies or any recomendations?
I am not talking about companies that supply electricians, I am looking for companies that just handle all the HR, taxes, etc.
Thanks
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I can only tell you what New Jersey allows, every state is different, here the EC must have the electrician, working as his employee, office staff can be leased, and other non electrical related jobs.
 
brian john said:
satcom:

I think that that leasing is much like being union as far as employees go. They are yours sorta of.
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Sorta will just not cut it, they must be under your direct control, and supervision.
Another mess that comes up with leasing is, the comp coverages, a leaasing company in most cases can not qualify for comp coverage, for the electrical comp rating. ( Most leasing companies do not have someone with the electrical experience, or qualifications to write the comp coverage.

There are technical leasing companies that do have the supervision and coverages, and qualified workers, but you will pay a preimum price, most likely more then running your own crew.

Union guys. work for electrical contractors, that must have all the coverages, and licenses where required.

Again this is for New Jersey, other states may differ.
 
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My state doesn't care. I could send over some of RR's rejects and they would cover them and send them back to me. If you spend time and shop around then you might be able to get a fairly reasonable costing one. I did, but they were based in San Diego, kinda far away from you. They worked with me cause I was design build partnering with a San Diego outfit that sends them thousands of workers. The trick is that they can get really good insurance rates due to negotiated bulk coverage, which a 5 or 10 man operation is not going to get. So even with the leasing company markup and profit added in, it can be less money than you trying to cover your troops under your own flag.
 
well, not to disagree with Satcom, but I have to disagree with satcom....

We are in NJ and have be using a PEO for years. PEO=Professional Employee Organization (or employee leasing company)

Here is a quick breakdown...we find the employees, we hire the employees, we have direct supervision and control over the employees...we are all employed by the PEO.

We have WC rates for SIC 1731 (electrical contracting)

Everyone is supervised by the licensed electrician. Our company pays all wages, benefits, etc.

The PEO administers all our HR...from taxes to wage garnishment.

As macmikeman said, they can negotiate better rates...Our WC is lower. In 8 yrs of using a PEO, we have had 3 WC claims, all paid with no problems, and our WC rates have actually gone down.

Health insurance is another area of savings...We just switched our PEO a couple of months ago. I am now paying $850/month for me, my wife and my son for a pretty good Aetna QPOS health plan. I was paying $1300/month for basically the same plan at our last PEO. And I would be paying $1500/month if I purchased the insurance by myself.

We switched PEO's from a company that was charging us around 4-5% of payroll, to one that is currently charging us $40/check flat fee.

The savings are adding up really quick.

It is perfectly legal in NJ to use a PEO if you are an EC, a Plumbing Contractor, and HVAC contractor, etc.

They are not like a union. They are more like ADP+

They simply provide you with a cost effective way to manage your employees and the myriad of labor/HR laws that are on the books that you don't even know exists.

Try to find one who will offer you a flat per check fee, as opposed to a company that bills you a % of payroll.
 
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emahler said:
well, not to disagree with Satcom, but I have to disagree with satcom....

We are in NJ and have be using a PEO for years. PEO=Professional Employee Organization (or employee leasing company)

Here is a quick breakdown...we find the employees, we hire the employees, we have direct supervision and control over the employees...we are all employed by the PEO.

We have WC rates for SIC 1731 (electrical contracting)

Everyone is supervised by the licensed electrician. Our company pays all wages, benefits, etc.

The PEO administers all our HR...from taxes to wage garnishment.

As macmikeman said, they can negotiate better rates...Our WC is lower. In 8 yrs of using a PEO, we have had 3 WC claims, all paid with no problems, and our WC rates have actually gone down.

Health insurance is another area of savings...We just switched our PEO a couple of months ago. I am now paying $850/month for me, my wife and my son for a pretty good Aetna QPOS health plan. I was paying $1300/month for basically the same plan at our last PEO. And I would be paying $1500/month if I purchased the insurance by myself.

We switched PEO's from a company that was charging us around 4-5% of payroll, to one that is currently charging us $40/check flat fee.

The savings are adding up really quick.

It is perfectly legal in NJ to use a PEO if you are an EC, a Plumbing Contractor, and HVAC contractor, etc.

They are not like a union. They are more like ADP+

They simply provide you with a cost effective way to manage your employees and the myriad of labor/HR laws that are on the books that you don't even know exists.

Try to find one who will offer you a flat per check fee, as opposed to a company that bills you a % of payroll.
Click to expand...

Yes we do just about the same for employee payroll and benifits, we get a better rate, but we hire and supervise, direct control, the stright leasing deal, where you do not have direct control is the problem.
 
Using a company to do your books and such is a good idea. IMHO the employee bit mentioned by others is contracting without a liscense (in Georgia). I started a thread concerning this several weeks ago. Its obvious not everyone shares my position.
 
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