Issue link: http://palletcentral.uberflip.com/i/801657
40 PalletCentral • January-February 2017 palletcentral.com or the purpose of this article, a leased worker is an individual officially employed by a leasing firm, but performing the duties and services for the client company. For employment tax purposes, the leasing agency is considered as the employer for such workers.…this is different than a temporary worker. Leasing employees has become an increasingly popular option among medium and small businesses that are looking at innovative ways for handling personnel matters, including payroll and benefits, and overall reducing their costs. The main benefit of leasing employees is that the leasing firm frees the company from administrative responsibilities associated with human resources and workforce management, so you are able to focus your attention on your business and meeting your business goals. Leasing agencies promise to reduce expenses in a variety of areas, such as single business tax, unemployment taxes, workers' compensation premiums, health insurance premiums and administrative expenses in managing employees. Although the savings can appear attractive, extreme caution must be used when considering this option and it's imperative to understand the risks you may be taking. What could happen if my leased worker is injured on the job? • The leased employee or their family could make a claim against you. • A claim can be made against you by the workers' compensation insurance carrier that insures the leasing agency. • An insurance company who provides employee benefits to the leased worker could make a claim against you seeking to recover what they have paid. • A claim can be made against you by an automobile insurer attempting to recover medical bills that they paid for the leased employee if they were hurt while using the company vehicle. • The leased employee could make a claim against you under YOUR workers' compensation policy on the basis that they were really employed by you. Doesn't my worker's compensation policy cover this type of claim? • No, the leasing company provides workers' compensation for the leased worker. Because the leasing company is providing the payroll services, the injured employee is paid under the leasing company's tax ID F Leased Employee Hurt on the Job… Am I Covered? Business Blog by Dennis Bilancia CPCU, CIC, AAI, AIS, LIC and Molly E. Green RD, LIC, CISR BUSINESS THE EXPERTS WEIGH IN