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The Ins And Outs Of Employee Leasing

If you're trying to decide whether to hire an employee leasing company, check out this expert advice first.

Opinions expressed by Entrepreneur contributors are their own.

How do you decide if an employee leasing company is for you? TheNational Association of Professional Employer Organizations (NAPEO)suggests you look for the following:

  • Services that fit your human resources needs. Is the companyflexible enough to work with you?
  • Banking and credit references. You'll need evidence thatthe company's payroll taxes and insurance premiums areup-to-date. Request to see a certificate of insurance.
  • Investigate the company's administrative competence. Whatexperience does it have?
  • Understand how employees' benefits are funded. Do they fityour workers' needs? Find out who the third-party administratoror carrier is and whether it's licensed if your state requiresthis.
  • Make sure the leasing company is licensed or registered ifrequired by your state.
  • Ask for client and professional references, and call them.
  • Review the agreement carefully and try to get a provision thatpermits you to cancel on short notice--say, 30 days.

For a list of NAPEO member organizations in your area, searchthe NAPEO's directory online at

Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need

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