Challenges for California Employers
In the "Golden State" even with just one employee, employers are required to purchase California workers' compensation insurance. For struggling small businesses, this mandatory requirement along with escalating costs can be debilitating and force some to consider closing up shop.
California has the highest workers' compensation insurance rates in the United States, so it's no surprise that some businesses who provide services classified as "high risk" by the California Labor Code are being forced into chapter 11.
A comment from a small manufacturing business owner posted on California's Small Business Action Committee website states that workers' compensation is his second highest business operating cost next to payroll expenses. He states that his premiums total more then $300,000 a year with under 120 employees.
PEOs Can Help
There are ways to lower workers' compensation insurance premium rates. Many California small businesses in high risk industries are using Professional Employer Organizations to significantly lower their costs. Also known as PEOs, these companies provide employers a life raft for their drowning businesses.
Employers who take advantage of the benefits of using a PEO service are able to waive their current California workers' compensation insurance company goodbye with a smile. When teamed up with a PEO service, the costs of their workers' comp is drastically reduced by thousands, sometimes much more.
In addition to giving California's high risk small businesses a fighting chance to afford work comp costs, Professional Employer Organizations dramatically reduce other employee related business costs such as human resource work, payroll administration, group health insurance and more. These savings translate to small businesses finally getting to use the black pen instead of the red, the opportunity to hire and to have competitive labor costs.
After a short time using a PEO service, businesses are able to create positive cash flow again while gaining higher margins on sales instead paying higher insurance premiums.
ELQ is the PEO Expert
We've been leaders in the PEO industry since 2001, so we'll be your best resource to provide a PEO company that will best fit your unique business.
Professional Employer Organizations are different in their specialties, terms and pricing- and we save you the time and effort required to interview each one. Just one call to us covers all of the bases, because we can quickly match you with a provider that meets your needs. Plus, our negation and leverage in the industry ensure you get the BEST pricing.
Call ELQ or fill out or quote form to lower your workers' compensation insurance premiums and enjoy the many other benefits of using a PEO provider, 888-582-8388.
