What is a Drywall Professional Employer Organization?
Like most in the construction and contracting industry, drywall companies are always looking for ways to reduce workers' compensation insurance and other employment related costs. For over 40 years, Professional Employer Organization (PEO) services have been the perfect partner to help in lowering insurance premiums and liabilities. Just a few of the great benefits a PEO company specializing in the drywall business include:
- Great savings on workers' compensation insurance, with little to no money down
- Outsourced online payroll, with free direct deposit, wage garnishments, tax filings and more
- Access to a team of HR professionals to manage unemployment claims, governmental compliance issues and more
- Employee benefits, like group health insurance, dental, and vision
How Does a Drywall PEO Work?
Drywall companies utilize Professional Employer Organization services to unload administrative work so they can focus on sales, service, and growth. The PEO provider becomes your back office partner, managing tasks such as payroll, tax reporting, e-verify, safety help, and more - all for less than you could do on your own.
The relationship between a PEO, the employee, and a client company, is called "co-employment”. This means both the PEO and client company share an employment relationship with the worker. The drywall PEO assumes responsibility and liability for risk management, personnel management, human resource compliance, and tax compliance. The client company manages the day-to-day functions- such as marketing, sales, and service. The PEO provides a complete human resource and employee benefit package for employees.
How Much Do PEO Companies Cost?
Most PEO companies charge a percentage of payroll for their administrative fee and that's averages between 2-4%. An example would be an annual payroll of $200k, with a 3% admin fee being $6k for services throughout the year. While there are a few PEOs that charge on a per check fee, or per employee per month (PEPM) schedule - the overall costs averages are still similar to a percentage of payroll.
All professional employment organizations charge different rates. Your rate charged will also depend on the amount and type of administrative services needed.
Advantages of Using a PEO for Drywall Workers' Compensation
PEOs have many benefits, but one of the biggest lies in the master workers' compensation insurance policies for their clients. Most businesses experience immediate savings on rates, while avoiding down payments and state fees. Payroll services also provide an audit each period to ensure accuracy. Every PEO has specific workers' compensation classifications they can/ cannot cover mandated by their Workers' Compensation insurance policy or other carrier arrangements.
Other Drywall PEO Workers' Compensation Benefits Include:
- Easy certificates of insurance
- Return to work programs
- Risk management and safety programs
- OSHA/ DOL compliance
- Improved cash flow with pay-as-you go plans
- Partnerships with A rated carriers
How Can ELQ Help?
Each PEO company is unique, just like any business. Their service and benefit offerings vary dramatically, as do the industry and employee size groups they work with. While some specialize in the trucking, or medical industries- others focus on construction operations.
Understanding that the right PEO provider fit may vary for a five or fifty employee group, is how we save you time and money. How much you'll save depends on your current situation, so call or fill out our quote form today – quotes and information are free!