Why Use a Professional Employer Organization (PEO)?
Concrete work is difficult- but dealing with the hassles of payroll, workers' comp, and other employee-related issues is no fun, either. Professional Employer Organizations (PEOs) have been around for over 40 years and are one of the fastest growing business trends in the last two decades. The advantages of a PEO service for concrete companies include:
- Huge savings on workers' comp insurance for your concrete operations. Plus, no annual audits and little to no money down on a pay-as-you go plan
- Affordable group health insurance, dental, vision, 401(k) savings plans and supplemental insurance options
- Payroll services to unload the hassles of tax reporting, quarterly and year-end reports, direct deposit and wage garnishments
- Human resources support. According to the Small Business Administration, employers spend up to 25% of their time dealing with employment related issues and compliance tasks
How Does A PEO Work?
When working with a PEO service, your concrete business enters into a shared or co-employment relationship. The PEO becomes the "administrative employer of record" and is responsible for workers' compensation, payroll and payroll tax compliance and other human resource-related tasks.
The business owner, or "on-site" employer - continues to hire, terminate and manage day to day activities. While these are just the early mechanics setup by the IRS, the only change you notice is how much more time you have when outsourcing these tedious tasks. Today's business environment demands an HR partner and an employee leasing solution specializing in the concrete industry, can dramatically improve your profit margins.
How Much Do PEO Companies Charge?
On average, 2-4% of your annual payroll is strong estimate for yearly management services. This includes complete payroll administration, tax reporting, safety, HR and complete benefits management. Each PEO company is different though, just like any business. Workers' compensation rates for concrete companies will vary dramatically by PEO, based on their internal costs and claims management. Other cost differences include the administrative fee, state unemployment tax rate, per claim deductible and more.
How Can ELQ Help?
By saving you time and money. Give us a call, ask questions and get answers that make sense. Our success depends on yours and you'll see that we're here to help. Since 2001 ELQ has made finding the perfect PEO service fast and easy.