Question

A method of containing costs that allows a professional employer organization (PEO), typically a larger company, to take over the management of a smaller company's HR tasks and become a coemployerto its employees is known as _____.

employee leasing

outsourcing

furloughing

nearshoring

job sharing

Answer 1

The correct option is

Employee leasing

In this approach he smaller companies make an agreement with professional employer organizations. In this approach the employment responsibilities are shared between both the organizations. The company which is transferring he liability is called the subscribing firm and the company to which responsibilities has been shared is called leasing firm. So by this way the responsibilities such as taxes, payroll expanses etc become the responsibilities of leasing firm.