Even a one-person homebased business can enjoy the benefits of employee leasing. With employee leasing, you--and any employees you have--become employees of the leasing firm; your company then leases your services by paying a fee, which is typically the amount of your salary, taxes, benefits and administrative costs.
The number of leased employees in the United States is expected to exceed 4 million this year, which gives employee leasing companies a tremendous amount of negotiating power when it comes to insurance and other benefits, which are passed on to you. Dale Hageman, president of Accord Human Resources Inc., an employee leasing firm in Oklahoma City, says it's possible that the savings you'll realize in insurance costs alone will offset the administrative fees the leasing company charges. The leasing company also processes all your payroll-related tax requirements, giving you more time to focus on your business. "If you can more productively use your time to produce revenue and build your business, then you can benefit by outsourcing functions like payroll and tax administration to an employee leasing company," Hageman says.
Leasing companies can be found under "Employment Services--Employee Leasing" in the Yellow Pages. Hageman suggests asking other small-business owners for recommendations, then checking out leasing companies before signing up.