Abstract Recently, there has been significant growth in the leasing of employees. While this growth was clue partially to certain unique advantages of employee leasing, it also was coincident with a provision in the Tax Equity and Fiscal Responsibility Act of 1982. This provision had been interpreted to provide a firm, leasing some or all of its employees, pension plan options and tax-related incentives not available since the enactment of the Employee Retirement Income Security Act 011974. However, the Tax Reform Act of 1986 contains amendments that alter the use of this provision. This study represents an extension of existing analytical research on the tax and incentive issues related to employee compensation, packages and provides a basis for assessing the effects of the Tax Reform Act of 1986 and any prospective tax law amendments affecting employee leasing.
Anderson et al. (Tue,) studied this question.