Employee Leasing Services, a.k.a. Professional Employer Organizations or PEOs, continue to grow dramatically- with over 1000 companies in all 50 states. But just as your company is unique, finding the right PEO provider that can deliver the benefits your company needs isn’t easy. Here are just a few of the differences between employee leasing providers:
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Workers' Compensation Differences:
- Costs
- States where coverage is provided
- A.M. Best rated vs. nonrated work comp carrier
- Risk acceptance (each company has dramatic differences in the industries they approve!)
- Ability to approve high experience modifiers or a bad claims history
- Per claim deductibles (some have them, others don’t)
- True risk management services (or just a handbook?)
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Health Care Differences:
- Costs
- BCBS, Aetna, Human, United Healthcare (what’s the best fit where you live?)
- Deductible options, co-pays and plans
- Credits for deductibles paid if moving during the plan year
- Management carve-outs, choice of plans for employees
- Extra charges for employees working in several states
- Group enrollment (will they show up for enrollment or expect you to do all the work?)
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Payroll Differences:
- Costs
- Per check charge or payroll driven percentage
- Charges or no costs for employee enrollment, garnishments, new hires, etc.
- Delivery costs (these can vary dramatically from $0 - $25 per payroll!)
- Payment options: automatic withdrawal (ACH), wire transfers, company check, cashiers’ check
- Remote check printing options
- Pay card options
- Secure-24 hour online access to your company information
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Other Differentiating Services:
- 401(k) costs and annual fees (some PEOs actually contribute to your plan!)
- Employer Practices Liability Insurance (EPLI) charges and deductibles
- Employee Assistance Programs (EAP)
- Long and short term disability insurance
- Life insurance options
- Dental & Vision plans
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