### Question
How does the law define leased employee?


### Answer
Under *26 U.S.C. § 414*, **leased employee** is defined as:

> any person who is not an employee of the recipient and who provides services to the recipient if—


(A) such services are provided pursuant to an agreement between the recipient and any other person (in this subsection referred to as the “leasing organization”),


(B) such person has performed such services for the recipient (or for the recipient and related persons) on a substantially full-time basis for a period of at least 1 year, and


(C) such services are of a type historically performed, in the business field of the recipient, by employees

#### Citation:
  - *26 U.S.C. § 414*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart B-Special Rules**

