What Are the Benefits of Using a PEO?
Running a successful tree service business demands focus on employee safety to keep insurance costs as low as possible. A Professional Employer Organization, or PEO, provides great safety training and immediate discounts on workers' compensation insurance for the arborist industry. Other benefits include:
- Complete payroll administration
- Access to group healthcare, dental, vision and 401k savings plans
- Pay as you go work comp plans, with no audits
- Employee pay cards and direct deposit
- Human resource help to limit employment liabilities
PEO Workers' Comp Savings
How can a PEO provide immediate work comp savings compared to a traditional policy? PEO providers have what are called "master work comp policies" that cover their client employees. Good risk management practices effectively drive their experience modification factor down, allowing for new clients to take advantage of those savings on the master policy. For example, a business with a current xmod of 1, may be able to take advantage of the PEOs master policy which currently holds a .8 xmod for a 20% discount.
Do I Still Have Control of My Employees In A PEO Relationship?
Yes. The business owner continues to hire, terminate and maintain daily direction of their employees. The PEO service acts as the "administrative employer of record", managing payroll, HR, unemployment claims and more.
What Does A PEO Charge?
Average administrative costs for using a PEO company run between 2% - 4% of your annual payroll. For example, an annual payroll of $500k with a 3% administrative fee would be $15k. Just of a few of the administrative services included in the costs are:
- On time payroll with delivery of checks, direct deposit, or pay cards
- Quarterly and year-end payroll tax filings
- Employee garnishments
- Benefits administration and reporting
- Unemployment claims management
- Safety and risk management services
- Human resource help
Why Choose ELQ?
As a nationwide PEO brokerage since 2001, we know which PEO programs provide coverage and services to the tree service industry. Just as your business is unique to any other, PEOs are unique, as well. While some specialize in trucking and transportation, others work only in the construction and trades industries. We make it easy to find the biggest tree service work comp discounts, with a provider that understands how tree experts work. Give us a call - knowledge is power and we make it make sense!