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A loaned employee is a worker provided to another company or project from a supplier employer. The company borrowing employees will benefit in acquiring skilled workers for temporary projects without having to hire a full-time employee.The loaned worker is a "borrowed servant" and the employer to which they are loaned is considered the special or doctrinal employer. Employee leasing is an arrangement between a business and a staffing firm, who supplies workers on a project-specific or temporary basis. Employee loans are funds that the company advances to assist workers. Employee loans are funds that the company advances to assist workers. The borrowed servant rule is a legal doctrine indicating that an employer may be held liable for the actions of a temporary employee. Supplier Agency the total number of hours the Borrowed Employee has worked at a User Agency's worksite. Why Does It Matter if An Employee is a Borrowed Employee? Be completed and returned to the Internal Revenue Service.