DEFINITIONS

A Temporary Service Organization or an Employee Leasing Agency is considered to be an employer and must comply with employer requirements (ex: unemployment, insurance, withholding tax, workers' compensation, etc.) on all "temporary" employees.

An employee-leasing company is distinguished from an temporary-help contracting firm based on supplying employees to client "worksite" employers with the intent to employ the specified employees on a long-term basis and not assign the employees to a series of limited-term assignments.

If a business engages in employee-leasing activity and fails to file the reports or taxes due to the Division, THE WORKSITE EMPLOYER BECOMES LIABLE FOR THE REPORTS AND TAXES DUE for the employees who performed service for them.

The worksite employer is not liable when contracting for temporary help. For this reason, it is important for worksite employers to be aware of potential liability for unemployment taxes when contracting for leased employees.