Expiration Date: 2/28/95
This survey seeks information on the growth of the employee leasing industry in your State, how State Unemployment Insurance (UI) staff have dealt with employee leasing firms, and how the growth of this industry has affected the UI system.
Most questions ask you to check the most appropriate answer, although some questions allow you to check all answers that apply. Other questions ask for data on industry size and employment; estimates are encouraged if detailed data are not available.
We estimate that it will take an average of 1 hour to complete this survey. If you have any comments regarding these estimates or any other aspect of this survey, including suggestions for reducing this burden, send them to the Office of IRM Policy, Department of Labor, Room N-1301, 200 Constitution Avenue, N.W., Washington, D.C. 20210 and to the Office of Management and Budget, Paperwork Reduction Project (1205-0345), Washington, D.C. 20503. (Do not send the completed survey to either of these offices.)
Please mail the survey and all accompanying documents by November 1, 1994, to
Employee Leasing Survey KRA Corporation 1010 Wayne Avenue, Suite 850 Silver Spring, Maryland 20910
Or fax to
KRA Corporation ATTN: Robert Cook (301) 495-2919
Your participation in this survey is entirely voluntary, but we hope you will be able to provide systematic information on your State's experience with the employee leasing industry to assist UIS in evaluating the impact of this industry on State UI Trust Funds. If you have questions about the survey, please call Robert Cook, Senior Economist, KRA Corporation, at (301) 495-1591.
State______________
1. Do State UI staff use the following to distinguish employee leasing firms from temporary help firms?
| Yes | No | |
|---|---|---|
| (a) Special licensing of leasing companies | __1 | __2 |
| (b) Legislation requiring registration of leasing companies | __1 | __2 |
| (c) Discussions with employee leasing firm managers | __1 | __2 |
| (d) Whether the word "leasing" appears in the firm's name | __1 | __2 |
| (e) The length of staff placements | __1 | __2 |
| (f) Other (Please describe) | __1 | __2 |
__________________________________________________
1A. What is the State's definition of an employee leasing firm? (Please cite source.)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
1B. What is the State's definition of a temporary help firm? (Please cite source.)
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
1C. What is the distinction between the two?
___________________________________________________________________
___________________________________________________________________
2. Who is considered the employer of leased employees in your State?
| (a) Employee leasing firm | __1 |
| (b) Client firm | __2 |
| (c) Other (Please describe) _____________________________________ | __3 |
___________________________________________________________
3. How does the State handle the leasing of:
| Partners and Sole Proprietors? | Corporate Officers | |
|---|---|---|
| (a) They are considered employees of the employee leasing company. | __1. | __1. |
| (b) They are considered employees of the client firm. | __2. | __2. |
| (c) They are considered owners and, therefore, not eligible for UI. | __3. | __3. |
| (d) Other (Please describe) __________________________. | __4. | __4. |
_______________________________________________
4. Do any laws specifically govern the operation of employee leasing firms in your State?
No __2 (Skip to Question 7)
4A. If yes, when were these laws passed? 19_______
4B. Please list the citations and attach copies of the appropriate section of the laws.
_____________________________________________________________________
_____________________________________________________________________
5. Why was this legislation enacted?
___________________________________________________________________________
___________________________________________________________________________
6. What effects has this legislation had on the employee leasing industry? (Check all boxes that apply.)
| (a) Reduced industry size | __1 |
| (b) Slowed industry growth | __2 |
| (c) Increased financial liability of firms in the industry | __3 |
| (d) Increased regulation of the industry | __4 |
| (e) Increased financial entry requirements (bonding, reserves, insurance) | __5 |
| (f) Increased reporting requirements | __6 |
| (g) Other (Please describe) _______________________________________ | __7 |
___________________________________________________________
7. Is the employee leasing industry monitored by UI staff?
Yes __1
No __2
7A. If yes, please describe how and the level of effort involved:
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
8. Who is held liable when an employee leasing firm defaults on UI payroll taxes?
| (a) The employee leasing company | __1 |
| (b) The client firm | __2 |
| (c) Neither; losses are experienced by the State UI trust fund | __3 |
| (d) Other (Please describe) _______________________________________ | __4 |
___________________________________________________________
9. Has your State experienced any of the following problems with employee leasing firms?
| Yes | No | |
|---|---|---|
| (a) Firm with unpaid UI trust fund contributions filed bankruptcy | __1 | __2 |
| (b) Payroll tax rate manipulation | __1 | __2 |
| (c) Delinquent UI payroll taxes | __1 | __2 |
| (d) Other problems (Please describe) __________________________ | __1 | __2 |
______________________________________________________
______________________________________________________
10. How has the operation of employee leasing firms affected your State's UI trust fund? (Check all boxes that apply.)
| (a) It has reduced contributions because the employee leasing firm now reports as a professional services firm. | __1 |
| (b) It has increased contributions because leasing firms now report employment of client firms that was previously not reported. | __2 |
| (c) It has reduced taxable wages because employees who previously worked for more than one client company now report wages from one employer only. | __3 |
| (d) It has reduced the number of covered employers by aggregate reporting. | __4 |
| (e) It has had no significant effect. | __5 |
| (f) Other (Please describe) _______________________________________ | __6 |
___________________________________________________________
11. How has the operation of employee leasing firms affected UI tax rates in your State? (Check all boxes that apply.)
| (a) It has raised tax rates statewide due to ineffective charges. | __1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (b) It has raised tax rates for firms in SIC 7363 (Help Supply Services) | __2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (c) It has had no significant effect. | __3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (d) Other (Please describe) _______________________________________ | __4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 12A. | 1993? | ____________ |
| 12B. | 1992? | ____________ |
| 12C. | 1991? | ____________ |
| 12D. | 1990? | ____________ |
| 12E. | 1989? | ____________ |
Please check if the above data are estimates. __
13. How many workers did the employee leasing industry employ in the following years? (Please provide estimates if actual data are unavailable.)
| 13A. | In 1993? | ____________ |
| 13B. | In 1992? | ____________ |
| 13C. | In 1991? | ____________ |
| 13D. | In 1990? | ____________ |
| 13E. | In 1989? | ____________ |
Please check if the above data are estimates. __
14. Have increases in the employee leasing workforce been accompanied by shifts in the reporting of the workforce from one industry category to another (e.g., from manufacturing to services)?
Yes __1
No __2
Don't Know __3
14A. If yes, does your State have any evidence that this phenomenon is a result of aggregated reporting of employment by employee leasing firms?
___________________________________________________________________
___________________________________________________________________
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14B. Does your State record the SIC codes of leasing company client firms or their employment in the appropriate SIC code?
Yes __1
No __2 (Skip to Question 18)
Other (Please Describe)
___________________________________________________________
15. What are the major industries of client firms? (List SIC codes, if available.)
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
16. Have there been noticeable changes in the SIC codes of client firms of employee leasing firms during the past 5 years (i.e., a change in the industry mix)?
Yes __1
No __2
16A. If yes, please describe.
___________________________________________________________________
___________________________________________________________________
17. Have there been instances of improper reporting of SIC codes by employee leasing firms?
| (a) | Yes, many (more than 10% of leasing firms misclassify) | __1 |
| (b) | Yes, although infrequently (5-10% of leasing firms misclassify) | __2 |
| (c) | No __3 |
17A. If yes, how has your State identified the misclassifications?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
18. Are employee leasing firms required to fulfill additional business registration requirements in your State?
Yes __1
No __2 (Skip to Question 19)
18A. What year did mandatory registration begin? 19_______
18B. Why was registration made mandatory? (Check all boxes that apply.)
| (a) To track the growth of the employee leasing industry | __1 |
| (b) To ensure that all UI taxes are paid properly | __2 |
| (c) To distinguish leasing firms from temporary help firms | __3 |
| (d) To ensure that proper SIC codes of client firms are reported | __4 |
| (e) Other (Please describe)____________________________ | __5 |
________________________________________________
18C. Has registration been successful in accomplishing each of the following goals? (Answer for all categories; not just for those reasons circled in 18B.)
| (a) | To track the growth of the employee leasing industry | __1 | __2 | __3 |
| (b) ) | To ensure that all UI taxes are paid properly) | __1 | __2 | __3 |
| (c) ) | To distinguish leasing firms from temporary help firms) | __1 | __2 | __3 |
| (d) | To ensure that proper SIC codes of client firms are reported | __1 | __2 | __3 |
| (e) | Other (Please describe) ___________________________ | __1 | __2 | __3 |
_______________________________________________
_______________________________________________
19. Does your State require each employee leasing firm to post a bond in order to operate within the State?
Yes __1
No __2 (Skip to Question 20)
19A. When was the bonding of employee leasing firms made mandatory? 19________
19B. How is the size of the bond determined?
| (a) | By the number of employees of the firm | __1 |
| (b) | As a percent of payroll | __2 |
| (c) | The bond is set at a flat dollar amount | __3 |
| (d) | Other (Please describe) __________________________________ | __4 |
______________________________________________________
______________________________________________________
19C. What liabilities does the bond cover? (Check all boxes that apply.)
| (a) | UI payroll taxes | __1 |
| (b) | Workers' Compensation premiums | __2 |
| (c) | Health insurance premiums | __3 |
| (d) | Pension contributions | __4 |
| (e) | Other (Please describe) _______________________________ | __5 |
_____________________________________________________
_____________________________________________________
20. Does your State require employee leasing firms to submit a list of client firms?
Yes __1
No __2 (Skip to Question 21)
20A. When were employee leasing firms first required to submit client lists? 19______
20B. Why was the reporting of client lists made mandatory? (Check all boxes that apply.)
| (a) | Because the client firm is liable for unpaid UI payroll taxes | __1 |
| (b) | To ensure that the proper SIC codes of client firms are reported | __2 |
| (c) | To identify client firms for compliance audit purposes | __3 |
| (d) | (Please describe) _________________________________ | __4 |
_____________________________________________________
_____________________________________________________
20C. What types of client information are employee leasing firms required to submit? (Check all boxes that apply.)
| (a) | Leased employment at their client firms | __1 |
| (b) | SIC codes of their client firms | __2 |
| (c) | Multiple Worksite Reports (MWRs) | __3 |
| (d) | Employer IDs of their client firms | __4 |
| (e) | Other (Please describe) _________________________________ | __5 |
_____________________________________________________
_____________________________________________________
21. Can you identify the number of employee leasing firms inactivated with delinquent account balances?
Yes __1
No __2
Don't Know __3
21A. If yes, in the last calendar year,
How many such occurrences were there?
What was the dollar amount of the associated delinquencies?
21B. How do the number of occurrences and the dollar amount of the associated delinquencies compare with those of the following:
| Higher | Lower | No Difference | Don't Kow | ||
|---|---|---|---|---|---|
| (a) | All other industries in the State? | __1 | __2 | __3 | __4 |
| (b) | Small firms (fewer than 25 employees) in the State? | __1 | __2 | __3 | __4 |
| (c) | Temporary help firms in the State? | __1 | __2 | __3 | __4 |
22. How is the experience-rated tax rate for an employee leasing firm determined?
| (a) | Different tax rates for each client firm based on the previous experience of each client firm | __1 |
| (b) | Identical tax rates for all client firms based on the overall experience of the leasing company | __2 |
| (c) | Other (Please describe) _______________________________________ | __3 |
___________________________________________________________
___________________________________________________________
23. Does this method differ from the experience-rating procedures used for temporary help firms?
Yes __1
No __2
23A. If yes, please explain how the methods differ.
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
24. What special considerations concerning business successorship does your State make for employee leasing firms?
| (a) | They may not transfer the experience record of client firms. | __1 |
| (b) | They must maintain the experience record and tax rates of client firms. | __2 |
| (c) | They are treated like any other firm. | __3 |
| (d) | Other (Please describe) ________________________________________ | __4 |
___________________________________________________________
___________________________________________________________
25. Were business successorship laws altered as a result of the growth of the employee leasing industry?
Yes __1
No __2
25A. If yes, please explain how the laws were altered.
_____________________________________________________________
_____________________________________________________________
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Additional Comments
Name of Person Completing Questionnaire____________________________________________
Telephone Number _______________________________________________________________
__ Please check if you would like a copy of the report on the survey results.
Thank you for taking the time to respond to this survey.