What Are The Benefits of Using A PEO Service?
PEOs give you an easy way to save money on insurances, while outsourcing employment administrative headaches and liabilities, so you can focus on growing your San Bernardino business. Great benefits include:
- No money down, pay-as-you-go California workers' compensation insurance at up to 40% off state rates with no audits.
- Complete payroll services for less than in house costs.
- Reduced rates on group healthcare and other employee benefits plans.
- Professional HR services that help in staying current with wage, safety and compliance issues.
Workers' Comp Insurance Costs with a PEO
Workers' compensation insurance is many times the largest cost associated with running a business in California, so it's not surprising that many employers are turning to a PEO for help. Good risk management and economies of scale on PEOs master policy often save employers up to 40% off the state rates for work comp.
In addition to reducing rates, employers avoid time consuming audits and help through their safety management services.
PEO Information and Stats:
- PEOs operate in all 50 states. States provide some form of specific licensing, registration, or regulation for PEOs.
- There are 907 PEOs in the United States.
- The total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (United States only), Amazon, IBM, FedEx, Starbucks, AT&T, Wells Fargo, Apple, and Google.
- The PEO industry's 175,000 clients represent 15 percent of all employers with 10 to 99 employees.
- Administrative costs are around $450 lower per employee for businesses that use a PEO.
What Do PEOs Charge For Services?
Also called employee leasing, a PEO company's administrative fees typically run between 2% - 4% of your annual payroll. For example, a trucking business with 15 employees and a $500k annual payroll, would pay $10k at 2%.
As you can imagine, the difference in costs is based on the amount of work performed. If employee benefits are involved, with reporting of ACA compliance documents, COBRA administration, 401k management, etc - all will have an affect on pricing structures. But even at 4% - it's impossible to find a professional to manage payroll, risk management and all these tasks for even $20k a year.
How Is Payroll Delivered By The PEO Company?
Most PEO companies provide a number of options for receiving your payroll including, FedEx or courier delivery of checks, direct deposit (most popular) and even remote check printing at your office. You choose the best method that works for your business.
Why ELQ?
Give us a call, since 2001 Employee Leasing Quotes has saved thousands of employers, millions of dollars in taxes and insurance. You'll get answers to questions that make sense and have a clear understanding of how these services work. We've done the research and vetting of hundreds of PEOs, understanding their strengths, costs and industry preferences. Call today, we're here to help.
