What is A PEO (Professional Employer Organization)?
PEO companies outsource workers' compensation insurance administration, claims management, payroll, and human resource tasks. The PEO’s team of HR experts ensure that all of these duties are completed correctly and on time. This allows business owners to concentrate on important tasks such as sales and client retention. The business owner never loses control over day-to-day business operations, such as hiring and firing and supervision of employees.
Can A PEO Lower Workers' Comp Rates?
Absolutely! Workers' comp coverage for movers and moving companies can be hard to find, especially at reasonable rates. PEOs have been a great resource the industry for many years- providing insurance savings, complete payroll management services, and even great employee benefit programs for the small business budget.
Workers' comp is often one of the most expensive parts of running a moving business. That's where a PEO can really help. PEO companies can save employers up to 40% off their state rates, while offering no down payments or fees, and never any year end audits. Many times, a PEO will provide workers' comp on a pay-as-you-go basis. And it's easy to get the certificates of insurance you need!
What Are Some of the Other PEO Benefits?
PEOs let employers outsource employment administrative work to focus on work that creates business and revenue. When you think about, it's the same concept of why hire of moving company. Some of the advantages of these services include:
- Detailed Payroll Reports
- No Audits
- Group Healthcare
- Supplemental Insurance Options
- Safety Training
- Work Comp Discounts of up to 40% off state rates
- Risk Management
- Background Checks
- Quarterly and Year-end Filings
- Wage Garnishments
- Direct Deposit
- and more!
How Much Does A PEO Cost?
As an industry average, you can expect an administrative fee at 2% - 4% of your annual employee payroll. For example, if your annual payroll was $300k and the employee leasing company charged 3% - the annual management costs would be $9k. Considering online payroll access, HR services, risk management and dozens of other benefits - PEOs are a bargain if even half of the services are used.
Why Use ELQ?
For over two decades, ELQ has helped moving companies access a PEO that will deliver the services they need. Need to lower your workers' compensation insurance rates? We can help. Want to outsource payroll headaches? We can do that, too. Call us today and see how the services we provide can save you time and money.