in which a firm (called subscribing firm) transfers its employees to another firm (called leasing
firm) which specializes in human resource management, payroll accounting
, and risk administration
. The subscribing firm leases its employees back as employees of the leasing firm and usually pays more for their services
than their salaries at the time of transfer
. This way the payroll and associated
expenses and taxes of the leased employees
become the leasing firm's liabilities.