Roofing Companies Struggle with High Costs
Among the industries which benefit from a Professional Employer Organization (PEO), roofers are near the top of the list. Professional, legitimately run roofing businesses are at a serious disadvantage against their competition that employs under the table, cash only paid roofers. A PEO provider can level the playing field.
When a legitimate roofing company bids on jobs, they must consider much more than the cost of supplies and hourly wages. They must also consider their payroll taxes and workers' compensation costs. For many roofers, the costs associated with workers' compensation may be the biggest factor in determining the competitiveness of their bids.
Workers' Comp Without a PEO
Before Professional Employer Organizations, small and new roofing companies had little choice in workers' compensation insurance because traditional insurance companies would work with roofers. The insurance companies that would offer work comp insurance for roofers only worked with large, established companies with the best safety records.
If the traditional insurance company would not write a policy for your company, your only option was to go with a state workers' compensation program. Either way, whether a traditional insurance company or the state work comp program, roofers workers' comp premiums were almost completely unaffordable.
PEOs Help Roofing Companies
Professional Employer Organizations work with roofers to scale down their work comp insurance. When roofers use a PEO company, they see dramatic savings- which bring down the employee-related costs of the work performed.
A roofing company can see workers' compensation savings of 15 - 40% when using a PEO service. Unlike with traditional insurance or a state work comp program that require thousands of dollars to get started plus the monthly premiums, a PEO company will also allow roofers to only pay a few hundred dollars to get started or $0 down, pay-as-you-go terms.
PEO services can provide much more for a roofing business than large workers' compensation savings. They can manage payroll- which saves time for the roofing business by providing employee checks and depositing payroll tax deposits. Roofers can focus on bidding jobs instead of the many payroll concerns such as possible audits, end of year responsibilities such as:
- Possible audits W-2s
- End of year responsibilities
- Preparing government payroll reports
When the legitimate roofing business moves the costs and time of payroll more in their favor, they can bid competitively, win more jobs, and see significant increases in their profits.
ELQ is the Roofing PEO Expert
Since 2001, ELQ helps roofers just like you find the perfect PEO for their business. PEO providers are not all alike, and they all cater to different needs and levels of service. With our 100% guarantee, you know you will find the right fit, the first time around. Give us a call and get started saving today.