Employee Leasing Quotes : PEO Blog

Here’s a great article passed along to me regarding the true costs of employees.

http://money.cnn.com/2010/03/26/smallbusiness/employee_costs/

Mike Burgelin
1-888-582-8388

Workers’ Compensation Insurance Differences:

• Costs.
• States that each provider has coverage in.
• Rated and non – rated work comp carriers.
• Risk acceptance. Each company has dramatic differences in the industries they approve.
• The ability to approve high experience modifiers or a bad claims history.
• Some have per claim deductibles - others don’t.
• True risk management services or just a handbook?

Health Care Plan Differences:

• Costs.
• Blue Cross & Blue Shield, Aetna, Human, United Healthcare – which best fits your needs?
• Annual renewal history is critical, so you’re not shopping year after year.
• Deductible options, co-pays and plans.
• Will leasing provider apply credits to deductibles paid in if moving during the plan year?
• Management carve-outs, choice of plans for employees.
• Do you have employees in several states?
• Will provider show up for group enrollment or expect you to do the work?

Payroll Administration Differences:

• Costs.
• Per check charge or payroll driven percentage.
• Charges or no costs for: employee enrollment, garnishments, new hires, etc.
• Delivery costs can vary dramatically from $0 - $25 per payroll.
• Payment options: Automatic withdrawal (ACH), wire transfers, company check, cashiers’ check.
• Remote check printing options.
• Pay cards options.
• Secure, 24 hour online access to your company information.

Other Differentiating Services:

• 401(K) costs and annual fees. Some leasing companies actually contribute to your plan!
• Employer Practices Liability Insurance (EPLI). Charges and deductibles.
• Employee Assistance Programs (EAP). Very useful and powerful counseling and support programs provided at no cost through some providers.
• Long and short term disability insurance.
• Life insurance options.
• Multiple Dental & Vision plans.

How We Can Help

At Employee Leasing Quotes.com, our #1 goal is to make you the most
competitive business in your market by providing you with an employee leasing solution
that fits the needs of your business.

Each employee leasing company is different (just like your business), and unique in their offerings. Their workers’ compensation rates and employee benefit plans have very distinct differences in coverage and costs. Each employee leasing company will service different industries, markets and states. Providing an immediate impact that you’ll notice, in the specific areas of your business that require attention is how we can help.

With over 1000 professional employer organizations to choose from, we make it simple to bypass the research, appointments, sales interviews and follow-up phone calls associated with searching for a PEO organization who can deliver the benefits you need. For over a decade now, our experience working with PEO providers make it easy for you relax while multiple employee leasing services - compete for your business.

The Bottom Line
Employers have looked to us for HR outsourcing guidance for over 10 years. Join our list of success stories that have saved over $42 million dollars in health and workers’ compensation premiums and more importantly, taken control of their business. You’ll feel comfortable when you talk to us. We listen, ask questions and simplify the process. We’re here to help.

1-888-582-8388

www.EmployeeLeasingQuotes.com

Wow, is it crazy out there! I have no idea what’s driving all the dramatic health care increases lately, but it couldn’t come at a more difficult time for employers across the country and they’re scrabbling for quick solutions. Many of heard of Anthem’s Blue Cross increases but it doesn’t seem to stop there. Over the last month, I can’t remember a time that we’ve worked on more benefit driven needs for employee leasing services – and there are great opportunities for savings with a PEO or employee leasing provider!

Mike Burgelin
1-888-582-8388

1. Time Savings: The most unexpected surprise any new business owner encounters when cutting the ribbon on their new found venture is the internal work that goes into running their business. Insurances, payroll, employee management take up a tremendous amount of time (up to 40% - small business administration) while producing absolutely zero revenue for the business. An Employee Leasing or Professional Employer Organization (PEO) will streamline all of these tasks, allowing you to focus on customers, marketing, training, receivables and many more income producing tasks. 

2. Workers’ Compensation Savings: In many industries, workers’ compensation insurance can be the most expensive part of running of business. Imagine if your work comp costs were ten, twenty or thirty percent less? How much for profitable and competitive would you be? Employee leasing services provide discounts unavailable through traditional insurance carriers, without big deposits, state fees and you’ll never hear the work “audit”!

3. Healthcare Savings: Small business owners experience the frustration of huge yearly healthcare increases as an annual event. Many jump from one plan to other as a result wasting days, even months of shopping and enrollments. By combining your group with hundreds of other small businesses through a PEO service, claims are diluted, providing you with more consistent costs and less time wasted. Employee leasing companies provide a toll free hotline for employees to ask questions, feel educated and most importantly - get help when they need it.

4. Payroll Management: Sure, it’s not rocket science, but payroll is tedious work and you can’t afford mistakes. There’s a reason why 1 in 3 businesses are penalized every year by the IRS. Add the time and money wasted on purchasing checks, envelopes, ink, payroll programs (that require frequent updates) and other material – employee leasing services take all the headaches away! An employee leasing company is responsible for all of your payroll tax liabilities and wage garnishments, while providing custom reports, free direct deposit or debit cards, even certified payrolls.

5. Human Resource Management: Who starts a business with prior human resource management experience? Not many. A simple definition of human resource management by wikipedia is “employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement”. A PEO provides a business owner with powerful services and information that help you maximize your investment on employees.

1-888-582-8388
www.EmployeeLeasingQuotes.com

If you have questions regarding employee leasing/ PEO services, beginning June 29^th I’ll be available online at www.skype.com - Mondays, Wednesdays and Fridays from 3-5 p.m. I can found in the skype directory– under Mike.Burgelin. It’s fast, free and easy to connect.

www.EmployeeLeasingQuotes.com

Part III

Employee Benefits

A quality employee benefits program improves morale and helps to reduce costly employee turnover. Employee leasing/PEO services give you the ability to access the same benefits for your small business that Fortune 500 companies offer. A PEO can also relieve a number of administrative hassles that come with managing employee benefit plans yearly. Can identify with some of the hassles below?

1.      Are you shopping for new rates and filling out employee questionnaires almost yearly?
Renewal rates with a PEO are much more consistent because of the amount of employees involved in the plans. You won’t experience the dramatic increases that are forcing employers to pay more for less coverage - year after year.

2.      Is the administrative work that comes with providing employee benefits growing yearly?
Accounting, COBRA administration, Section 125 documentation, deductions and more governmental regulations to come - you can outsource this work to experts at fraction of your current costs.

3.      Do employees come to you with policy and claims questions?
Wouldn’t it be nice to refer them to a name and an 800 number? A PEO will allow you to do just that.

Most employers truly care about their employees and want to be able to provide benefits. In fact, the Small Business Administration (SBA) reports that the current number one small business issue is the cost and availability of Insurance. The next and final of the four core PEO services we’ll discuss is human resources. Every year, human resource work is becoming a stronger issue that employers must address or face potentially devastating consequences.

www.EmployeeLeasingQuotes.com

1-888-582-8388

NAPEO (the PEO industry organization) estimates the Employee Leasing/PEO industry grew a very robust $5 billion in 2008, to $68 billion in gross revenues. Today, roughly 700 PEOs are operating in all 50 states.

Employers have been quick to catch on to the benefits of PEO services compared to outdated methods of handling employee related administrative tasks. As a professional in the employee leasing/PEO industry, I’ve discovered in my thousands of conversations with business owners over the years that there truly are “PEO personality types”. Here is a short list of the similar characteristics I’ve found to be present in those who inquire about PEO services.

PEO User Characteristics

Place a higher value on their time. They truly live the saying “time is money”.
Will outsource work that they are not an expert in or that simply isn’t profitable.
Excellent at delegating tasks so they can focus on their core strengths.
Take time to listen or read about new industry ideas and opportunities that can impact their business.
Understand the administrative side of the business is just as important for profitability.
Know their labor costs and issues that may influence their rise or fall.
 

Because every business is different and has their own unique set of goals, obstacles and circumstances- it would be foolish to suggest a PEO is the only service that makes sense. But if you haven’t inquired about how a PEO could impact your business, you’ll never know what benefits you and your business may be missing out on. Contact us for answers to your questions. We can be reached at 1-888-582-8388.

www.EmployeeLeasingQuotes.com

If there’s ever been a time to not have a 30% group healthcare increase- it’s right now! Unfortunately, every day across America, business owners are getting renewal notices with 25-50% increases or more. During this tough business climate, these increases are requiring employers to evaluate if continuing group healthcare is financially possible.
This is the perfect time to look into the benefits of a Professional Employer Organization (PEO). Why? Let’s face it, if you have 20,40- even 100 employees on group health, something is going to happen every year to someone involved in the plan that forces a spike in your renewal rates. In fact, most businesses expect to go shopping for new rates every year, and fill out new employee applications within a deadline to see whether renewing is optional or mandatory.

 
Stability and savings are how the services of a PEO could impact your business. The biggest advantage of group healthcare through a PEO is the volume of people that are on their plan. This helps dilute the larger claims so you don’t experience the drastic rate increases. Also, many of these companies have different tiers of rates so if you have an especially healthy group, you may see dramatic savings from traditional insurance policies.

 
A good PEO will have a dedicated phone number just for employees to ask questions regarding their plan, claims questions or even how to find local doctors and hospitals. They will also provide COBRA administration and run the employee health deductions through payroll pre-taxed.
You could see some unimaginable savings! Think about it, a small business with just 20 employees on group healthcare, saving an average of $80 per month each is almost $20,000 a year! See what’s possible for your business. You won’t know until you call.

I spent last week on the road visiting with clients, insurance agents and PEO principles. I was curious about how insurance agencies and the PEOs who use AIG were handling customer comments and if they were still selling AIG services- so I asked them about it.

The agents I spoke with acknowledged trying to slowly move AIG accounts over to other providers. The PEO principles also stated it was an issue they were trying to overcome and were currently in negotiations with other carriers.

This makes perfect sense from a business perspective. I can’t imagine trying to overcome the AIG questions time and time again, when you realistically can’t give a solid, comforting answer. My next thoughts are, how long will the government throw money at this sinking ship- and do they even understand the buyer/seller mentality that will quickly tear this giant down? I hope they do and that our tax dollars have been used to buy time for other insurers to clean AIG’s house. What are your thoughts?