Single Employment vs. Co-employment
The key difference between single employment and co-employment is outsourcing. Single employment is exactly what is sounds like; it is the status of an employer who has the sole legal rights and responsibilities of employment with regards to their workforce. Co-employment exists when the legal rights and responsibilities of employment have been divided and outsourced. In the co-employment scenario, there are two employers with actual or potential legal rights and obligations with respect to the same employee or group of employees.
- One employer retains all employer responsibilities
- Employed and paid the direct provider of product or service
- The sole employer administers wages and benefits
- Hours worked and wages are collected and paid by the sole employer
- The sole employer deals directly with work comp carrier regarding risk management, premium calculations and deposits, claim investigations, loss control, premium audits, etc.
- Two legally separate employers share some, or all, of the employer responsibilities with the same employees
- Employed by the staff leasing company, but working for the direct provider of product or service
- The staff leasing company administers wages and benefits
- Hours worked and wages to be paid and directed by the sole employer, but administered by the staff leasing service.
- The staff leasing company deals directly with the work comp carrier regarding risk management and the correlating responsibilities and liabilities.
Single Employment vs. Co-Employment | Eagle Employer Services