"an employing unit that contract with a client company to supply workers to perform services for the client company, provided, that the term "employee leasing company" does not include private employment agencies that provide workers to employers on a temporary basis or entities such as driver-leasing companies which lease employees to an employing unit to perform a specific service."

an individual, association, partnership, corporation or other business entity that agrees to lease or is leasing its employees through an employee leasing company on a long term basis."The difference between a staffing firm (finds customers and supplies them with staff) and a PEO or an employee leasing company is that (outsources the HR-department for that customer sometimes including the staff).

Temporary employees are by definition only assigned to a specific firm for a specific period of time." and "Leased employees perform their jobs at a particular company for an open-ended period of time and do not move around to difference work assignments."A third category is the "rent-an-employer"-form where an individual with a client finds an employer to act as middle man, providing an employment and salary to the person and an invoice to the client. This is called Umbrella company in the United Kingdom and Self-Employment in Sweden.Essentially employee leasing combines all your employment fees (FUTA, FICA, etc.) into a single, monthly fee. The employee leasing company offers a plan to reduce HR/employee related costs to a lower rate than the employer currently has them.