Benefits of Construction PEOs
A Construction focused Professional Employer Organization (PEO), can reduce insurance and administrative costs, allowing you to win more bids and have more time to focus on growing your construction company.
Construction PEO Benefits Include:
- No Audits & Big Discounts
Construction businesses can save up to 40% on pay-as-you-go workers' compensation insurance ( even with bad claims history)with little to no money down.
- Better Medical Benefits
PEOs offer a range of life and health insurance as well as supplemental policies.
- 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.
- Compliance Enforcement
Professional HR experts offer valuable assistance on compliance and employment related issues that reduce liabilities.
- Workers’ Compensation
Pay-as-you-go Florida workers' compensation insurance, with little to no money down and no annual audits at discounted rates.
- Employee Assistance Programs (EAPs)
Some PEOs will offer EAPs to help with life/family needs.
Options for 401k savings plans.
Save Money with PEO Services
Working with a PEO will also save your business money. Administrative costs when using a professional employer organization range between 2%-4% of your annual payroll. This amount includes: complete payroll administration throughout the year, including all tax reporting and W-2s, safety and HR services, free direct deposit, wage garnishments,management of employee benefits and more.
Small Business Administration and US Chamber of Commerce studies show in-house costs of managing these employment tasks ranging between 9%-13% of payroll. Working with a construction focused PEO reduces this overhead cost and saves you invaluable time.
Construction PEO Savings for Workers' Compensation
Business owners and operators in the construction industry are federally mandated to supply their employees with workers’ compensation coverage. Most construction employers work hard to keep their workers safe and free from injury. Construction is labor intensive and acquiring comprehensive and affordable workers’ comp insurance should be a top priority.
Construction PEO programs can have a large and immediate impact on cost savings under the PEO's master workers' compensation insurance policy. These companies have hundreds of clients taking in millions of dollars in insurance premiums, so good risk management practices lead to favorable workers compensation experience ratings.
PEO companies can then pass their savings and discounts down to their clients. While average savings range between 17%-20%, some clients experience greater savings based on the work performed and state locations. Even construction companies with higher xmods based on claims experience immediate savings. No audits are an added perk of using a PEO that manages your payroll along with your workers compensation. The professional employment organization performs a direct audit each pay period.
Construction PEO Service Agreement Obligations
Most PEO companies have a yearly service agreement. Within the agreement in most cases, a clause is included where either party can exit the relationship provided a 30 day notice is given. The service agreement includes the proposed rates for annual services, as well as both party’s obligations throughout the year.
How ELQ Helps You
ELQ has been working with and vetting PEOs since 2001. We have spent two decades researching available professional employee organizations and understand all of their unique differences. We have the experience that employers in the construction industry need to find the right fit for their businesses. We are the nation’s premier PEO broker and take pride in saving you and your business time and money. Let us do the detailed work of matching you with your ideal PEO.
