What Is Meant by Staff Leasing Services and Who is Responsible for Reporting Leased Employees Wages?
Staff leasing is an arrangement by which employees of an entity known as a staff leasing services company are assigned to work at a client company. The term does not include: a temporary help service, and independent contractor, or a temporary common worker employer. In general an employer contracts with a leasing company and releases some or all of their employees to the leasing company. The employees are then leased back to the client company, usually to perform the same services for which they have been employed previously. The arrangement is intended to be a long-term or continuing nature, rather than temporary or seasonal in nature. All staff leasing companies who intend to operate in the State of Texas must be issued a license by the Texas Department of Licensing and Regulation. A properly licensed leasing company will be considered the employer of all leased workers for purposes of the Texas Unemployment Compensation Act. Staff leasing firms will report wages and pay contributio
