As we kick off our 21st year in the Employee Leasing/ PEO industry – I’m happy to say that I am NOT surprised at the growth of these services. I started ELQ after competing against PEOs for several years and seeing the benefits they provided for businesses.
Back in those days, phone books (not the internet) were still the means for finding goods and services and the PEO industry was hardly known outside of a few states. Twenty years later, there are thousands of PEO companies throughout the world. As we start the new year, here’s what four different businesses in four different states will gain by using a PEO in 2022.
Georgia: Fencing Company
This is a new business startup, and the owner contacted us after not being able to get workers’ comp coverage for his employees. He originally tried to access a policy through a local insurance agent, but was declined because he had no prior coverage. Fortunately, another business owner he worked with suggested he look into a PEO service.
We helped him access a PEO company that works with new businesses and specifically contractors. He paid no down payments or policy fees, on a pay-as-you-go payroll plan. That plan eliminates time consuming audits and liabilities from payroll tax reporting.
Texas: Private Equity Group
An investment group specializing in the hospitality industry was in the process of purchasing a few hotels in New Mexico and Kansas. Employee leasing/ PEO services have been a great find for private equity firms through the years. Why? Because a PEO that is licensed in multiple states has already set up unemployment tax accounts in their states of business, along with having their workers’ comp insurance coverage in place. This saves prospective clients both time and money in doing these tasks.
The group immediately accessed savings on both the unemployment tax rate and workers’ comp insurance, while gaining a back office partner to deal with payroll and HR services for less than they could do on their own.
Plus, they eliminated the need to get quotes on employee benefitsin different states for each group, utilizing the PEO’s wide variety of group healthcare options.
Illinois: Performing Arts Center
We love working with companies in lots of different industries, but working with this Rockford theatre company was our first time in this industry. They have been dealing with a number of time-consuming issues through the years and the president was looking to accomplish several goals.
One was to outsource payroll- which they were tired of dealing with in-house. Also on his list was to find affordable workers’ comp, which was difficult based on the number of volunteers, 1099 employees, and part-time employees they have.
Another task was to be able to access employee benefits for their employees. As the president said, “Dealing with these issues has almost become a full-time job for the person we originally hired as our costume director.”
One of our long time PEO partners who’s had clients in this industry was able to able to fulfill all of their needs. Even better, as a non-profit theatre company they will save over $10k annually on insurance costs.
South Carolina: Trucking Company
This is a second generation family trucking company that needed to change their 1099, or contract, drivers to employee status. With drivers in high demand and many contract drivers taking advantage of higher wages and employee benefit offerings through larger trucking companies, this family business needed to act fast in keeping their valued drivers.
One of our PEO companies that specializes in the trucking and transportation industry provided a multi-state workers’ comp policy within days. Plus, their Fortune 500 style employee benefits covering over 20 thousand drivers throughout the US, gave them immediate access to health, dental, vision and savings plans at reduced rates.
Give us call if you’d like to see how a PEO could benefit your business. As one of the nation's oldest and largest PEO brokerages, we work for our clients and their best interests. We understand which PEO companies can best help certain employee sized groups and industries. Learn more, and maybe a PEO could be a great move for 2022.