What Does a Colorado PEO Service Do?
There are a number of great benefits for employers looking to partner with a PEO. One of the biggest advantages is the time savings that business owners are able to achieve by outsourcing the headaches of payroll and employee management. A Professional Employer Organization (PEO), is an HR outsourcing service for small and midsize businesses, providing workers' compensation insurance, payroll and employee benefits administration, claims management, and governmental compliance assistance.
Benefits of a Colorado PEO Service
Professional employer organizations and many HR outsourcing providers offer Fortune 500 benefits with competitive rates that are accessible for big and small companies. Human resource professionals reduce many employment liabilities by providing assistance with safety and employee handbooks, along with proper hiring and employment procedures. Outsourcing through a PEO provider even manages tasks such as PTO tracking, wage garnishments, multi-state reporting and ACA compliance.
Some of the most common PEO benefits include:
- Better Medical Benefits
PEOs offer a range of life and health insurance as well as supplemental policies.
- Payroll Administration
PEOs offer payroll services that generally include paper checks, direct deposit and visa paycards. They can also assist with tax reporting and wage garnishments.
- Retirement Planning
Many PEOS offer a variety of retirement savings plans including 401(k)s.
- Compliance Enforcement
Professional HR experts offer valuable assistance on compliance and employment related issues that reduce liabilities.
- Workers’ Compensation
Pay-as-you-go Colorado workers' compensation insurance, with little to no money down and no annual audits at discounted rates.
- Employee Assistance Programs (EAPs)
Some PEOs will offer EAPs to help with life/family needs.
Statistics on Using a PEO
According to a recent study by noted economist McBassi & Company:
70% have reported their revenues have increased since using a PEO
66% reported their profitable has increased since using a PEO
98% would recommend a PEO to a small business colleague
50% are less likely to go out of business
Colorado PEO Service Costs
Colorado professional employer organizations either charge a fixed percentage of your total payroll, or a flat fee per employee. All professional employment organizations charge different rates. Your rate charged will also depend on the amount and type of administrative services needed.
Save Money by Using a PEO for Your Colorado Business
Working with a Colorado PEO will also save your business money. Administrative costs when using a professional employer organization range between 2%-4% of your annual payroll. This amount is much less than the average 8%-15% (evaluated by the Small Business Administration) when managing similar tasks in-house.
When the PEO manages this busy work, an employer is able to focus his/her time on building profits and expanding business opportunities.
Other Colorado PEO Benefits Include:
- Reduced Unemployment Tax Burdens: In some cases, PEOs can extend state unemployment tax rates (SUTA) that are lower than a client's business can get on their own.
- Better Employee Benefits: PEOs makes it easy to attract and retain the best employees by providing your company with high quality, affordable employee benefits.
- Lowered Costs: PEOs can typically save Colorado companies 15-25% on their workers' compensation insurance rates. Plus, workers' compensation premiums are collected with weekly or bi-weekly payroll, eliminating down payments, policy fees and annual audits.
- Less Turnover: PEO companies allow business owners to offer their employees a sense of security by providing flexible payroll options, benefit and retirement options and a safe working environment.
How Does the Colorado PEO Relationship Work?
The PEO becomes your "back office" partner, allowing you to outsource work that takes time and doesn't generate revenue. Also known as employee leasing, PEOs provide complete payroll administrative services, human resource and governmental compliance experts that lower your employment liabilities.
Working with a Colorado PEO also allows companies to use the PEO’s lower EM (experience modifier). This can be particularly beneficial to companies with prior claims issues and high experience modifiers.
Why Work With ELQ to Find a Professional Employer Organization?
If you're ready to experience the competitive edge that these programs can offer your Colorado business, we're here to help. We work with licensed and carefully vetted PEO companies from around the country. Our industry experience gives us the knowledge to access the best provider to help grow your business.
Every PEO and every business working with a PEO is different. ELQ ‘s expertise ensures your Colorado business is matched with the right PEO. ELQ has been researching and vetting hundreds of Colorado PEO providers since 2001, so you don't have to! Professional employee organizations differ in their industry preferences, employee sizes, benefits, services and of course costs. For example, one may include background checks, or pre-hire drug testing in their management fee, while another charges on an a la carte basis.
Your business is unique to any other. ELQ understands each business has specific needs and requirements that need to be met. Whether you work in construction and need relief from high Colorado workers' compensation rates, or own a medical practice where employee benefit help is essential, ELQ can help. We know the PEO market and how to help your operations save time and money. Request a Colorado PEO quote today!