Benefits of a PEO Specializing in Arborists
Running a successful tree service business demands focus on employee safety to keep insurance costs as low as possible. A Professional Employer Organization, or PEO, provides great safety training and immediate discounts on workers' compensation insurance for the arborist industry.
PEO services take the responsibilities of payroll, HR, risk management and more off a business owner's shoulders, so the focus can be on doing what you do best. In addition, the right PEO company can offer your business the opportunity to attract more talented employees by providing great employee benefits plans and other perks.
Plus, PEOs assume many of the liabilities associated with payroll, tax filings, employee benefits, and compliance related to any employee laws. By outsourcing non-income producing work to a PEO Company, business owners are then free to focus on sales, service and management of employees.
Some of the most common PEO benefits include:
- Workers’ Compensation
Pay-as-you-go California workers' compensation insurance, with little to no money down and no annual audits at discounted rates.
- Payroll Administration
PEOs offer payroll services that generally include paper checks, direct deposit and visa paycards. They can also assist with tax reporting and wage garnishments.
- Retirement Planning
Many PEOS offer a variety of retirement savings plans including 401(k).
- Employee Assistance Programs (EAPs)
Some PEOs will offer EAPs to help with life/family needs.
- Compliance Enforcement
Professional HR experts offer valuable assistance on compliance and employment related issues that reduce liabilities.
- Better Medical Benefits
PEOs offer a range of life and health insurance as well as supplemental policies.
Arborist Workers' Compensation Advantages with A PEO
PEOs have many benefits, but one of the biggest lies in the master workers' compensation insurance policies for their clients. Most businesses experience immediate savings on rates, while avoiding down payments and state fees. Payroll services also provide an audit each period to ensure accuracy. Every Arkansas PEO has specific workers' compensation classifications they can/ cannot cover mandated by their Workers' Compensation insurance policy or other carrier arrangements.
How can a PEO provide immediate work comp savings compared to a traditional policy? PEO providers have what are called "master work comp policies" that cover their client employees. Good risk management practices effectively drive their experience modification factor down, allowing for new clients to take advantage of those savings on the master policy.
How Much Do PEO Services Cost for an Arborist Company?
Professional employer organizations either charge a fixed percentage of your total payroll, or a flat fee per employee. All professional employment organizations charge different rates. Your rate charged will also depend on the amount and type of administrative services needed.
Administrative costs range between 2%-4% of your annual payroll. This amount is much less than the average 8%-15% (evaluated by the Small Business Administrations) when managing similar tasks in-house.
What Does A PEO Administrative Fee Include?
Average administrative costs for using a PEO company run between 2% - 4% of your annual payroll. For example, an annual payroll of $500k with a 3% administrative fee would be $15k. Just of a few of the administrative services included in the costs are:
- On time payroll with delivery of checks, direct deposit, or pay cards
- Quarterly and year-end payroll tax filings
- W-2s
- Employee garnishments
- Benefits administration and reporting
- Unemployment claims management
- Safety and risk management services
- Human resource help
Why Work With ELQ to Find a PEO?
As a nationwide PEO brokerage since 2001, we know which PEO programs provide coverage and services to the tree service industry. Just as your business is unique to any other, PEOs are unique, as well. While some specialize in trucking and transportation, others work only in the construction and trades industries.
We make it easy to find the biggest tree service work comp discounts, with a provider that understands how tree experts work. ELQ‘s expertise ensures your arborist business is matched with the right PEO.
Your business is unique to any other. ELQ understands each business has specific needs and requirements that need to be met. Whether you work in construction and need relief from high workers' compensation rates, or own a medical practice where employee benefit help is essential, ELQ can help. We know the PEO market and how to help your operations save time and money. Request a PEO quote today!
