I'm located in TX and I have a client who has decided to work with an employee leasing company. I understand the benefits of having your employees involved in this type of setup, they get benefits that you can't offer & sometimes afford when you're a small business, along with the burden of liability lies on the employee leasing company NOT the small business owner should any work issues happen. There has to be a "con" to the small business owner or everyone would setup their business within this framework of employee leasing, right? Is the small business owner losing out on some tax credit that they can not take b/c the employees are NOT their employees.

Also should I just set it up as a G&A expense? It seems that way to me, but I feel that I'm missing something. Has anyone ever had a client who worked with an employee leasing company? Please let me know your thoughts & advice.
Thank you so much!
Kris