Employee Leasing Made Simple

Employee Leasing is Great! Just like anything be aware of your state worker comp rate and the Admin Fee.

Employee leasing or PEO (Professional Employer Organization) is great because they handle the workers comp, payroll taxes and the Admin fee is the percentage they charge for doing this. Just make sure as the client you know what your state rate is. Here's an example....

State of Florida
Worker Comp code for Sales is 8742. The cost is .52 per hundred. So for every hundred dollars in wages your cost is .52 cents. Employee Leasing uses whats referred to as your Leasing Factor.

When you ask for a quote, this is the number that you will get in the form of a percentage. There are three things that make up your leasing factor.....Taxes, Worker Comp & Admin fee.

Here's a quick example for the Sales code using Florida's rate
Taxes 9.45 plus the Worker Comp of .52 and an average Admin fee of 4%. Your Leasing Factor would be 13.97%.