Benefits of a PEO for Automotive Businesses
Employers in the automotive industry want to focus their time and energy on sales, service and growth- not on HR, payroll and other employment issues. Connecting with a Professional Employer Organization, or PEO, can do just that, and save your auto business thousands in workers' compensation insurance premiums. Just a few of the many benefits a PEO provides include:
- Pay-as-you-go workers' compensation insurance with discounted rates
- Access to group healthcare, dental and vision and 401k savings plans
- Answers to employment related issues from a professional HR service team
- Payroll services, including on time tax payments, quarterly and year-end reports, wage garnishments, free direct deposit and more
Save Money with PEO Services
Working with a PEO will also save your automotive 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 PEO reduces this overhead cost and saves you invaluable time.
Automotive PEO Savings for Workers' Compensation
Business owners in the automotive industry are federally mandated to supply their employees with workers’ compensation coverage. Most auto 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.
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 automotive 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.
How Much Does A PEO Company Charge For Services?
On average, a PEO management fee runs between 2-4% of annual payroll. Standard services include complete annual payroll administration, quarterly and annual payroll tax filings, benefits management, along with safety and HR assistance. With almost one thousand PEO and employee leasing programs throughout the country, each provider has different service offerings and pricing.
Top PEO Providers for the Automotive Industry
Since 2001, ELQ has made finding the perfect PEO company fast and easy for business owners in the automotive industry. With so many PEOs and each being dramatically different, there may be only one that fits your needs.
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. FIll out our online form or call us today to start saving!
