Employee Leasing Quotes : PEO Blog

1. Payroll Services: 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. Employee leasing (aka PEO services) companies assume your payroll tax liabilities and are responsible for timely deposits and reporting.

2. Workers’ compensation Insurance:
No premium deposits
Discounts unavailable through traditional markets
No annual state fees
No audits

3. Labor burden reports: Do you currently know to the penny what each employee truly costs you? An employee leasing company’s labor burden report helps you understand your bottom line, so you what to sell your goods or services for to earn the margins you seek.

4. Wage garnishments: Another check, another stamp and another wasted twenty minutes of someone’s time. Employee leasing services handle these time consuming tasks.

5. W-2’s: What’s worse- an ex-employee calling you in late February for their W-2 or getting return to sender over and over again when you mail them out… both! Let the employee leasing service deal with the headaches.

6. Work-place safety: Investing in workplace safety education is investing in the future of your business. Your workers’ compensation insurance history can make you more competitive or drive you out of business. Professional Employer Organizations have a significant stake in your company’s safety program. It’s in their best interest to help.

7. Direct Deposit: Imagine the extra hours of productivity you would get, if employees weren’t spending part of the afternoon waiting for checks then taking the time to cash them? Wasted time costing you money – direct deposit services are free!

8. HR Services: The only thing worse than being wrong on a hire is the employee dragging you to court when they’re fired. A human resource professional will help in outlining job descriptions, interview training, background checks, drug screening and proper job posting techniques.

9. Employee Benefits management: Shouldn’t benefits questions be directed to your benefits provider? Many PEO services provide a toll free hotline to their benefits department for employees to ask questions, feel educated and most importantly – get help when they need it!

10. Time Savings: If you see the value in these services but don’t have the time to become an expert, then you’re ready to explore the impact employee leasing services could have on your business.

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I have seen this situation many times when reviewing employers’ Workers Compensation situation. The cost of Workers Comp is a budget item that is in the overhead cost (cost of doing business) section of their budget. I would never infer that an employer, whether self -insured or not, should just change their company’s budget to make Workers Comp a controllable variable cost.

Including Workers Comp as a variable cost will usually result in three changes/improvements:

• Workers Comp costs will be examined more by Senior Management. If Workers Comp is viewed as a fixed cost, little attention will be paid to a possible silent budget killer. If a Risk Manager or CFO presents the costs as variable, Senior Management or the owners will be much more accepting of an in-depth analysis.

• Forecasting your future Workers Comp budget will be more accurate. If your company had 500 employees, and now has 350 due to the economy, why would you pay the same amount on the upfront policy with a 30% drop in employees and payroll? The same can be said for the budgeting of a self-insured. If Workers Comp costs are seen as overhead, then forecasting is usually not even attempted overall.

• Now that Workers Comp is a variable cost, the budget responsibilities can be broken down, for instance, each department, plant, location, etc. One of the quickest ways to lower a Mod is to delegate responsibility for their portion of the Mod down to the smallest groups possible. Lag time on reporting injuries are usually cut very quickly and substantially when lag time is looked at by management or the Risk Manager.

There are many other advantages to looking at Workers Comp as a variable cost.

Written by: James Moore with J&L Risk Management Services

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Florida small businesses seeing their second workers’ compensation rate increase in as many years are calling on the state to reduce the increase because they fear it will harm the economy.

A small business group is asking that the increase be reduced by $62 million — an amount equal to the extra costs to the system of physician-dispensed drugs.

Florida Insurance Commissioner Kevin McCarty last October approved a statewide average 8.9 percent rate increase, which took effect on Jan. 1. It followed a 7.8 percent increase implemented last year. But even with this year’s increase, the state’s rates have fallen by a total of 58.6 percent since 2003.

For the small business community, however, two increases are two too many. Read More

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Think the Equal Employment Opportunity Commission’s not serious about investigating how employers use the results of employee background checks? Check out this case.

Pepsi Beverages has agreed to pay $3.13 million and provide job offers and training to resolve a charge of race discrimination filed with the EEOC. Read more

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The best part of being a PEO broker is helping people find a solution that impacts their business and really makes a difference. Many of those moments happen when we’re able to rescue an employer from their state’s assigned risk pool. What’s a state assigned risk pool? While most employers are able to obtain workers’ compensation coverage through the voluntary market (meaning an insurer agrees to write the employer’s policy), there are many organizations that are not for a variety of reasons.

These companies may be in a high-risk industry, like a roofer or anarborist.  Sometimes it’s related to a history of frequent or expensive work comp claims- or perhaps it’s just because a company is too new or too small to be a good risk. Since workers’ comp insurance is mandatory for almost all employers in every state but Texas - a market must exist to ensure coverage for employers unable to get access through the voluntary market. Therefore, state assigned risk pools were made available.

As you can imagine, any business involvement with government usually isn’t good. Many employers face work comp rates in excess of twice the amount of the going industry rate - just because they’re a new or small business. Plus, you can be asked for up to 90% of that up front!

We’ve recently helped tree service, roofing and staffing companies get out of these programs and into an employee leasing service. These employers have saved 33% as an average versus what they were paying for work comp through their states assigned risk pool. They’re also starting services with the employee leasing company from $0 to $500 down, pay-as-you go! I know there are thousands of companies out there that need this help to stay competitive - or to just stay in business. Give us call, we can help.

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The five leading causes of workplace injuries drive nearly 72% of the nation’s direct workers compensation costs, according to research released Tuesday by Liberty Mutual Group Inc.

Read Article:http://www.businessinsurance.com/article/20120110/NEWS08/120119985?tags=|63|309|278|305|84|304|92

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Over the last thirty years, the Employee Leasing/PEO industry has experienced tremendous growth and continues to grow each year as businesses learn more about the benefits of these services. In fact, the US Department of Labor predicts that by the year 2020, more than half of all American employees will be contracted through an employee leasing company. So, with almost 700 employee leasing companies in all 50 states to choose from, why use a broker to find a provider for your company?

Finding the right employee leasing company for you. As you can imagine, just like your business, no employee leasing provider is the same. Their workers’ compensation insurance and benefit plans have very distinct differences in coverage and costs. They service different industries, markets and states. Each company has minimum employee or annual payroll amount requirements as well. For example, many employee leasing companies only provide work comp coverage in the state(s) where their business resides. So if you work in multiple states, your employees would not be covered if an accident were to happen.

Each PEO provider also has different group health insurance providers with differences in benefits and pricing. This is extremely important not only in cost differences, but what if you’re in an area where the carrier’s doctors and hospitals are limited? Unlike a company salesperson who may try and fit you into their plan that has mediocre coverage, our job is to know which PEO companies have the insurance coverage that will work for your employees.

Competitive pricing. When we submit your company information to employee leasing providers who can deliver the services you need, each provider knows that they’re competing for your business. This can result in a savings of between 10-30% compared to contracting directly with the employee leasing company. There are many long term advantages as well. For example, if you hire more employees and your payroll grows, we’ll request more discounts for you that ordinarily wouldn’t be brought to your attention by the employee leasing company or sales person.

Strength of service providers and knowledge of the industry. As with any industry, there are strong and poorly managed employee leasing companies. The job of a broker is to save you time and money by investigating the history and financial strength of each PEO for you. We travel to the PEO providers, communicating with the principles and management. We know and develop relationships with their internal employees, the people who you’ll communicate with regularly. This is important in knowing their professionalism, communication and problem solving skills. Your goal in outsourcing these tasks is to eliminate time consuming administrative paperwork – not add to it. The PEO broker should know who can successfully service all the needs of your business, consistently.

As the employee leasing industry has grown, all the advantages favor using independent representation. We can help you reduce the time, sales appointments and hassles of trying to find out who can deliver the services you need; Security, in knowing you’re working with a reputable, professional employee leasing company that has a history of providing services to businesses in your industry and savings, as employee leasing providers compete for your business.

Mike Burgelin
President
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The state-based workers’ compensation system has evolved and survived for 100 years but it could face tough challenges in the coming years as the country struggles to dig itself out of the deep recession. Read more http://www.insurancejournal.com/news/national/2011/11/29/225414.htm

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Earlier this month, the Internal Revenue Service joined the Department of Labor and state agencies in cracking down on employers that misclassify employees as independent contractors, leaving business owners and hiring managers scrambling to reevaluate their contractor relationships and ensure that they are complying with the law.

To help sort through the confusion, here are five characteristics of independent contractors, from lawyers and law firms on JD Supra: Read more:

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According to the Bureau of Labor Statistics’ annual report on workplace fatalities, 4,547 people died on the job last year.

Occupations with the highest rate of work fatal injuries (deaths per 100,000 workers) were:

1. Fishers and related fishing workers: 116

2. Logging workers: 91.9

3. Aircraft pilots and flight engineers: 70.6

4. Farmers and ranchers: 41.4

5. Mining machine operators: 38.7

6. Roofers: 32.4

7. Refuse and recyclable materials collectors: 29.8

8. Driver/sales workers and truck drivers: 21.8

9. Industrial machinery installation, repair and maintenance workers: 20.3

10. Police and sheriff’s officers: 18.0

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