PEO History
With it's inception over 40 years ago as "employee leasing" services, PEOs allow you to pour time and effort into tasks that generate growth for your business - and outsource the work that doesn't create a dime of revenue.
Like many states, California work comp and group health insurance costs continue to increase along with employment laws and lawsuits. PEO companies can reduce both labor costs and liabilities.
PEO Service Benefits:
- Affordable no money down, pay-as-you-go California workers' comp insurance.
- Complete payroll management from A to Z. Quarterly and year-end filings, wage garnishments, free direct deposit, specialized reports and more.
- Group healthcare, dental, vision and 401(k) savings plans for small business budgets.
- HR and compliance help, unemployment claims and pre-employment screening.
What Are The Costs of PEO Services?
PEOs charge an administrative fee that averages between 2-4% of your annual payroll. For example, if your annual payroll is $400k and the PEO company charges 2% - that's $8k yearly for services. Compared with in house costs of 8-15%, based on Small Business Administration (SBA) statistics - PEOs are a bargain!
PEO Statistics:
- PEOs provide services to 175,000 small and mid-sized businesses, employing 3.7 million people.
- 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.
- Businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.
How Can ELQ Help?
Each PEO company is unique in their service and benefit offerings. For example, one may include background checks, or pre-hire drug testing in their management fee, while others may charge on an a la carte basis. Even more differences include healthcare providers, such as Blue Cross Blue Shield compared with Aetna, or Humana.
Understanding your needs is just one way we help you through the process in accessing your perfect San Francisco PEO provider. Call today, get answers that make sense and see how your business can benefit.
