A PEO company's average administrative rate is between 2-4% of annual payroll. Consider how that estimate relates to your business. Is it possible to find a professional to manage all payroll- related administration throughout the year for that cost- not including the costs of check stock, payroll programs, annual upgrades and other related expenses?
Plus, that person would need to be a certified risk manager, able to review your safety manual, help identify potential workplace hazards and provide training material.
They would also need to be a licensed HR expert, able to minimize your employment liabilities, assist with hiring/firing procedures, wage and hour laws, employee training, performance reviews, new hire reporting and more.
As you can see, there's incredible value in a PEO service when it comes to administrative costs. Plus, PEO providers can secure workers' compensation insurance coverage at a lower cost than you could on your own. Below are the 5 standard employment cost factors proposed from a PEO- the same as you currently have. Call and get PEO costs and information for your business and start saving today.
Federal Insurance Contributions Act is a Federal payroll tax imposed
on both employees and employers to fund Social Security and Medicare.
The Federal Unemployment Tax Act tax is a payroll or employment tax paid
solely by the employer.
The State Unemployment Tax Act is also a payroll tax paid by the employer
and set by each state.
Insurance providing wage replacement and medical benefits to employees injured
in the course of employment.
Accurate and timely payment of wages along with dozens of other responsibilities.