What is a Connecticut PEO Service?
A Professional Employer Organization (PEO), is an HR outsourcing service for small and midsize businesses, providing workers' compensation insurance, payroll and employee benefits administration, claims management, and governmental compliance assistance. Utilizing a PEO for your Connecticut businesses allows you to focus on growth and business expansion.
Connecticut PEO Service Benefits
Professional employer organizations and many HR outsourcing providers offer Fortune 500 benefits with competitive rates that are accessible for big and small companies. Human resource professionals reduce many employment liabilities by providing assistance with safety and employee handbooks, along with proper hiring and employment procedures. Outsourcing through a Connecticut PEO provider even manages tasks such as PTO tracking, wage garnishments, multi-state reporting and ACA compliance.
Some of the most common PEO benefits include:
- 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. - Retirement Planning
Many PEOS offer a variety of retirement savings plans including 401(k). - Compliance Enforcement
Professional HR experts offer valuable assistance on compliance and employment related issues that reduce liabilities. - Workers’ Compensation
Pay-as-you-go Connecticut 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.
Statistics on Using a PEO
According to a recent study by noted economist McBassi & Company:
- 70% have reported their revenues have increased since using a PEO
- 66% reported their profitable has increased since using a PEO
- 98% would recommend a PEO to a small business colleague
- 50% are less likely to go out of business
Advantages of Using a Connecticut PEO for Workers' Compensation
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. Most PEOs will have insurance with large, nationwide workers' compensation insurance companies and can provide their clients with savings of up to 40% off state rates.
Payroll services also provide an audit each period to ensure accuracy. Every Connecticut PEO has specific workers' compensation classifications they can/ cannot cover mandated by their Workers' Compensation insurance policy or other carrier arrangements.
Other Connecticut PEO Workers' Compensation Benefits Include:
- Easy certificates of insurance
- Return to work programs
- Risk management and safety programs
- OSHA/ DOL compliance
- Improved cash flow with pay-as-you go plans
- Partnerships with A rated carriers
Cost of Connecticut PEO Services
Connecticut PEO companies 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.
Save Money by Using a PEO for Your Connecticut Business
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 is much less than the average 8%-15% (evaluated by the Small Business Administration) when managing similar tasks in-house.
How Does the PEO Relationship in Connecticut Work?
The PEO becomes your "back office" partner, allowing you to outsource work that takes time and doesn't generate revenue. Also known as employee leasing, PEOs provide complete payroll administrative services, human resource and governmental compliance experts that lower your employment liabilities.
When you partner with a PEO company, you enter into a co-employment relationship. Co-employment means sharing legal responsibilities for your employees. Day-to-day business decisions, such as hiring, scheduling and training continue to remain under your control.
But anything that could raise HR-related legal issues is managed by the PEO, which limits your liability and allows you more time for sales and growth. Working with a Connecticut PEO also allows companies to use the PEO’s lower EM (experience modifier). This can be particularly beneficial to companies with prior claims issues and high experience modifiers.
Why Work With ELQ to Find a PEO?
If you're ready to experience the competitive edge that these programs can offer your Connecticut business, we're here to help. We work with licensed and carefully vetted PEO companies from around the country. Our industry experience gives us the knowledge to access the best provider to help grow your business.
Every PEO and every business working with a PEO is different. ELQ ‘s expertise ensures your Connecticut business is matched with the right PEO. ELQ has been researching and vetting hundreds of Connecticut PEO providers since 2001, so you don't have to! Professional employee organizations differ in their industry preferences, employee sizes, benefits, services and of course costs. For example, one may include background checks, or pre-hire drug testing in their management fee, while another charges on an a la carte basis.
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 Connecticut 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 Connecticut PEO quote today!
