What is a Professional Employer Organization?
A Professional Employer Organization, also known as a PEO, provides small- and mid-size electrical businesses with a wide range of services. The PEO handles all payroll administration and employee benefits, which frees the business owner up to focus on growing and maintaining day-to-day operations.
Business owners want to focus their time on running their business- and not on the "business of employment". But most employers don’t have the training, knowledge, or background to do this successfully. So without the skills associated with human resources, benefits, payroll and the associated software systems, these tasks are unmanageable. PEOs handle these tasks easily with a team of payroll and HR experts.
PEOs also eliminate the burden of having to keep up constantly changing human resource and compliance regulatory laws. Many PEOs will even provide employment liability insurance (EPLI) in case a former employee sues the company for discrimination or wrongful termination.
The employer continues control over the day-to-day functions of the business, while the PEO provider shares the risk and liability issues.
Some of the benefits a PEO arrangement will provide for your electrical company include:
- Workers' compensation administration and audits
- Section 125 plans
- HR management
- Employee benefits administration
- Section 125 plans
- Payroll administration and processing
- State unemployment insurance
- 401(k) retirement plans
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
How Does a PEO Arrangement Work?
A PEO arrangement is also called co-employment. This unique situation allows electrical contractors to outsource all liabilities and HR management, while still maintaining the day-to-day control of their employees. The business owner never loses control over his/her business and retains the ability to hire, fire, train, reprimand and schedule their employees. The PEO becomes the employer of record for tax purposes and is responsible for all of the HR-related tasks, such as paying the employees and providing the benefits.
PEO Workers' Compensation Advantages for Electricians
Workers' compensation insurance is many times the biggest costs associated with owning a business, so it's not surprising many electricians are turning to PEOs to lower their costs. Professional employment organizations negotiate competitive programs with insurance providers, which can often save employers up to 40% off the state rates for work comp.
In addition to drastically reducing their rates, electricians also use PEOs to make sure that their employees are properly classified under the correct work comp code to avoid audits and possibly save even more. PEOs offer a payment service to help employers avoid large up-front payments while improving their cash flow.
Additional Electrician PEO Work Comp Advantages:
- Uniquely designed workplace safety programs to helps prevent injuries
- Claims managed efficiently when they occur
- Injured employee relationship management
- Return-to-work program to reduce the length and cost of workers' comp claims
Why Use ELQ to Find a Electrician PEO Provider?
ELQ began our mission to help employers in 2001, so we understand the differences between each PEO company and how they work. Not every PEO can provide the services and programs your unique business needs.
We save you the time and effort from interviewing multiple PEO companies to find the one that works for you. We work with dozens of these HR outsourcing companies, so we can be objective and work for your best interests in the transaction. And most importantly, we use our negotiation power and leverage to ensure you get the best PEO at the best possible price.
Getting started is easy. Just give us a call, ask questions, or fill out our online form and see how these services could impact your electrical business today.