How Can A PEO Help?
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 work comp 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 It Work?
Drywall companies utilize PEO 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 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 Charge?
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.
The costs will vary by company and are based on the amount of work each expects to perform. For example, a restaurant with historically high turnover can equate to more W-2 filings, or possibly a larger amount of unemployment claims filed, resulting in a higher administrative fee.
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 find out today – quotes and information are free!