Employee Leasing Quotes : PEO Blog

As the Employee Leasing or PEO industry continues to grow and I have more conversations with business owners new to these services, one of the first questions asked is, what are the benefits – or how will this improve my business?

The simplest answer is that an Employee Leasing provider will help you reduce three of the most pivotal aspects of running and managing your business.

Number one is, Reducing Your Administrative Burdens. Look, you started your business to sell a product or provide a service, and generate income doing what you’re trained to do, what you love to do. But what kills the excitement and prevents growth, is the time -and money, wasted on work that doesn’t produce a dime for your business.

Dealing with payroll administrative work, governmental compliance issues, workers’ compensation and health insurance management - are a small portion of what costs employers roughly $5,000 a year, per employee - in time and paperwork (Small Business Administration 2004).

Imagine the relief of unloading the responsibilities of annual payroll management, reporting accurate deposits, quarterly reports and dozens of other tedious tasks. An employee leasing provider has a fully staffed team of payroll and human resource experts, dealing with these issues daily for hundreds of employers. This means you can outsource the administrative headaches and the liability - for less than you could do on your own.

Part II – Cutting Business Costs.

www.EmployeeLeasingQuotes.com

Geographic limitations:

• Are you limited in any way to the number of states we can hire new employees? If so, which states are you currently not registered in to provide PEO services?

Payroll Taxes:

• What is the State & Federal unemployment tax rate which we will be charged? What are your own current unemployment rates and is the PEO’s rate higher than your current rate?

• Do you stop charging State & Federal unemployment & ETT tax when our employees reach the required wage thresholds? (The payroll tax thresholds are the first $7,000 wages for CA and Federal)

• When highly compensated employees reach $106,800 in YTD wages, do you stop taking social security tax (6.2%) from the employee? And do you stop the 6.2% social security payroll tax match for the employer?

• If we leave your PEO services mid-year, what happens to all the payroll taxes our company has paid YTD? Do all our company level employee and employer taxes start from zero again?

· Do we get those employer payroll tax monies back?

· Do we need to double pay all of our employer payroll taxes again?

Section 125 Employee Medical Premium Contributions I Employer FICA Tax Match:

• Can the employee contribute to their medical premiums on a pre-taxed basis?

• Do we the employer get the FICA tax match break on our employees medical premium contributions? Or do we still have to pay the employer FICA tax match portion on our employee’s medical contributions?

• If we have an FSA plan, do our employees contribute to this on a pre-tax basis?

• Do we the employer get the FICA match tax break on our employees FSA contributions? Or do we still pay the employer match portion of FICA on the FSA contributions?

• At the end of the FSA plan year what happens to the unused FSA funds. Is it returned to us or does the PEO keep those funds?

• Is the billing easy to understand and broken out by: service fee, gross wages, payroll taxes, workers’ compensation premiums and health benefit premiums? Or is the billing a “bundled” percentage of gross wages and confusing to decipher which services cost what?

• Does my billing percentage rate decrease as each one of my employees reaches their first $7,000 in wages? Specifically, do you respect the threshold for employer taxes for State & Federal unemployment? (Hidden fee alert)

Benefits Flexibility:

• Regarding health benefits: Do you offer us the flexibility to select any carrier we want?

• Regarding workers’ compensation: Do you offer our company the flexibility to select any carrier we want? Can we shop for a new WC policy each year?

• Regarding 401(k) plans: Do you offer our company the flexibility to select any 401(k) plan we want? Can we shop for a new 401(k) Plan if needed?

• If we utilize your PEO services, but decide to leave your payroll services, can we keep the health benefits plan, workers’ comp policy and 401(k) plan?

• Can you administer any third party plans or policies that are not your own? For example: Health, workers’ compensation or 401(k)?

Officers/Owners of the Company:

• Will we be charged work comp premiums for the officers/owners of the company under your program? (Officers and owners are typically excluded from WC premiums)

• Do the officers/owners of the company have to sign an employment agreement to be employees of the PEO?

Officers/Owners of the Company:

• Will we be charged work comp premiums for the officers/owners of the company under your program?

• Do the officers/owners of the company have to sign an employment agreement to be employees of the PEO?

Company Process:

• Do we still retain the right to hire and fire our employees?

• Who will actually be the employer of record?

• Will our employees W2’s at year end say our company name or the PEO company name?

• Will our company be held to Federal & State HR compliance laws based on our actual number of employee or will our company be looked at as a much larger organization because we are pooled under your FED ID #? Will we be subject to additional Federal & State compliance laws of a much larger company? (i.e. COBRA, FMLA)

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

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What services do you need? “Picking the right PEO is of paramount importance,” says Sheridan. The PEO should be certified by the Employer Services Assurance Corporation, have experience in the client’s industry and cover that company’s territory, he says. Also bear in mind that some PEOs specialize in a Web-based high-tech approach, while others are focused on face-to-face support.

Remember — each PEO is different, and business owners would do well to read the fine print.

Read the full article here: http://businessonmain.msn.com/browseresources/articles/managingemployees.aspx?cp-documentid=25949577&source=msnmoney

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

For years now, PEO outsourcing services have continued to grow dramatically each year, in every state. While many business owners connect with a PEO service for savings on workers’ compensation insurance or to reduce rising group health care costs, with increased governmental regulations and health care reform, help with human resource services have quickly become an urgent need for employers.

While many may not think of HR services as a “good investment”, if you can’t answer yes on most of the questions below, you’re wasting productive time finding and dealing with the answers yourself.

1. I’m aware of the new federal and state labor regulation changes that took effect this year.
2. I know how to handle unemployment claim disputes.
3. I know which questions are illegal to ask a new hire during the interview process.
4. I understand how the new health care reform laws will impact my business.
5. I understand COBRA compliance and can manage COBRA administration.
6. My employees know that I am an “At Will” employer and understand what that means.
7. I understand all the mandated OSHA forms that apply to my business.
8. I complete performance reviews regularly with all my employees.
9. I know my responsibilities for our out-of-state employees.
10. I conduct reference and background checks on all our new hires.

Find more information regarding PEO services on our frequently asked questions page.

1. You’re a numbers guy:
You look forward every year to the new IRS (Circular E) employer’s tax guide. Even when you were young you loved solving math problems and the IRS always adds a new wrinkle to the equation, so that makes it even tougher.

2. You always need something to do:
Lucky for you, the state and federal government keep adding employer compliance laws you’ll need to stay on top of. Abbreviations like COBRA (not the snake), ERISA, ADA, HIPPA and FMLA are just a few that you’ll enjoy reading up on.

3. You’re a shopaholic:
Clothes, shoes, insurance- it doesn’t really matter. Every year, renewals on workers’ compensation and health insurance benefits are just another opportunity to shop. You also get the side benefit of reading all the new changes in deductible options, co-pays, limits, exclusions, networks, provisions and so on.

4. You’re a good debater:
You were first in your class and county champion, so you look forward to workers’ compensation audits. This annual showdown gives you the chance to single-handedly take on big insurance.

5. The thought of not seeing Jennifer, the pretty blonde teller, at the bank when you have to make timely payroll deposits is reason enough.

6. Outsourcing payroll would take away Sally’s only job:
Besides a few IRS penalties for late payments and abusing smoke breaks from time to time, she’s always there to talk to. She plays a mean game of online chess and she actually did get you back some money once for overpayment on payroll taxes.

7. You’ll lose all your power:
Sure it takes up a lot of time to sign payroll checks, 940, 941 and a few dozen other forms regularly - but you’re the boss. Delegating or outsourcing employee-related issues shows a sign of weakness.

8. You’re a hard working, thrill seeker:
There’s no better feeling of accomplishment than finishing up payroll at midnight on a Thursday. The rush of pushing it to the limit, knowing your life could be in danger if paychecks aren’t ready Friday morning is exhilarating!

9. Outsourcing the payroll would provide a legitimate excuse to not give out loans to those who come knocking on the door before payday.

10. Because it might cost more:
You know what your costs are now? Why change? Besides, change can be difficult, even disruptive. Even if it costs less, how much could you really save?

There’s a reason why the U.S. Department of Labor predicts that by the year 2020, half of American employees will be getting paid through employee leasing companies- they work!

Mike Burgelin
www.EmployeeLeasingQuotes.com
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

The problem: A ten year-old staffing company in the hospitality industry that has eight separate work comp policies and unemployment rates for each state they provide services in. Their administrative and cost control issues include individual policy renewal dates each year, separate experience (emod) ratings on each policy and different state unemployment rates. They estimate spending 30 hours per week on payroll management, mailings, phone calls between states and insurers.

The solution: An employee leasing company with a multi-state policy. We were able to provide this staffing agency one policy for all the states they do business in – with no money down! Plus, they received discounted rates on their work comp insurance, savings on unemployment tax rates, no audits, no state forms to file, no deposits – no more hassles.

The staffing company’s existing payroll system was easily integrated with the employee leasing providers. With a supervisor at each location, they also choose remote payroll check printing saving money on overnight shipping and time when checks needed to be processed immediately. They estimated a savings of over $75,000 annually in insurance savings, but were even more excited about how this would help them grow even faster by reducing the time spent dealing with “garbage work, that was killing our productivity”.

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