Accounting firms have to assess rapid growth of employee leasing. Help Dec 1990 Accounting firms have to assess rapid growth of employee leasing. Accounting firms should consider using the services of a leasing company. Leasing companies provide such personnel-related services as preparing the payroll and administering the pension and health plans. The number of leased workers is expected to increase from approximately 500,000 in 1990 to 10 million by 2000.
Employers using a leasing firm can still make all of their own personnel-related decisions.
The employer pays the leasing firm, and the leasing firm pays the employees. The employer still makes all personnel decisions, and instructs the leasing company as to rates of pay. The leasing firm delivers employee checks on payday. The employer writes only one check to the leasing firm, covering payroll plus an administrative fee for the pay period. This is a business administrative service.