Missouri PEO Service Advantages
A Professional Employer Organization (PEO), also known as an employee leasing service - can be a great solution for reducing employment costs, liabilities and administrative work for any Missouri employer. So, what are the benefits that a PEO company provides?
- Big discounts on Missouri workers' compensation insurance, with no audits or down payments
- Human resource services for reduced employment liabilities and risk management
- Access to affordable employee benefit plans
- Complete payroll administration, including direct deposit, W-2s and more
Time is the biggest and most notable benefit you'll appreciate when using a PEO company's services. Like most businesses, too much time is spent on non-revenue tasks- work such as payroll, tax reporting, employee garnishments, employee benefits management, and workplace safety meetings.
How Does a Missouri PEO Work?
Businesses that work with a PEO keep complete ownership and control of their business. The PEO client continues to manage their business, providing products or services to its buyers. The PEO company focuses on employment related areas such as payroll, HR administration, risk management and benefits. The contract and relationship shared between a PEO and business is referred to as a “co-employment relationship.”
Each company shares certain employment responsibilities, but the PEO becomes the employer of record for the client’s employees.
Missouri PEO Savings for Your Business
Working with a PEO will also save your business money. PEO companies use economies of scale to purchase insurances such as workers’ compensation, healthcare, dental, vision coverage, and more. By combining all their client’s employees under one EIN, PEOs are able to purchase insurance and employee benefits at a cheaper price, and can then pass those savings on to their clients.
Plus, administrative costs with a PEO are proven to be much less than managing these tasks in-house. Average fees when using a professional employer organization range between 2%-4% of your annual payroll, which is far less than the average 8%-15% as founded by the Small Business Administration.
What Does a PEO Charge for Services?
PEO companies typically charge for their administrative fees in one of two methods. A flat fee per employee per year, or a percentage of your annual wages. Here’s an example of each:
- Annual Payroll Based Fee: With this method, administrative costs typically run between 2-4% of your annual payroll. This means if your 8 employee, $300k annual payroll was charged 2.5% - the costs for all payroll and HR services would be $7,500 yearly, or $144 weekly.
- Employee-Based Fee: Average PEO costs for this pricing structure ranges between $750 to about $1,500. Using the same example above at $800 per employee per year, the annual administrative fee for services would be $6,400, or $123 per week.
There are a number of variables in considering which PEO pricing structure would benefit your Missouri business and this is just one of the many ways we help.
Best Missouri PEO Providers
What will be the best PEO service for your Missouri business and why choose us to help? For starters, understand that every PEO is different, just as your company is to any other. They differ in services, benefits, insurances, and of course pricing. Some specialize in savings on workers' compensation premiums for trucking or construction businesses. Others may target medical and legal professionals to improve employee benefit offerings.
As the nation's premier PEO brokerage, we've done the vetting on hundreds of providers for over 20 years and understand which clients best fit a particular PEO's industry preference. Ask questions and get answers that make sense. Call today, or request a Missouri PEO quote and see how your business can benefit.