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Companies often find it easier to lease employees from employee leasing companies instead of actually hiring workers. When a company leases employees it pays a fee to the employee leasing company. The leased workers do work for the company doing the leasing, but the workers actually are paid by the employee leasing company and all human resource matters and employee related matters – including as health benefits, workers' compensation claims, payroll, payroll tax compliance and unemployment insurance claims - are handled by the employee leasing company. When companies do not want to deal with employee related matters, they often hire a professional employer organization or PEO. PEOs specialize in handing management of payroll, workers compensation, human resources and employee benefit matters for companies that hire them.
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