The fact is, independent statistics show it pays to use a PEO, with businesses reporting increases in revenue and profitability.

A PEO company's average administrative rate is between 2-4% of annual payroll. Consider how that estimate relates to your business. Is it possible to find a professional to manage all payroll- related administration throughout the year for that cost- not including the costs of check stock, payroll programs, annual upgrades and other related expenses?

Plus , that person would need to be a certified risk manager, able to review your safety manual, help identify potential workplace hazards and provide training material.

They would also need to be a licensed HR expert, able to minimize your employment liabilities, assist with hiring/Firing procedures, wage and hour laws, employee training, performance reviews, new hire reporting and more.

Business Cost Factors

All businesses have these five cost factors in common. The right PEO can save you thousands of dollars on workers' comp insurance premiums, and time saved outsourcing payroll administration.

FICA

Federal Insurance Contributions Act is a Federal payroll tax
imposed on both
employees and
employers to fund Social Security and Medicare

FUTA

The Federal Unemployment Tax
Act tax is a payroll or employment tax
paid solely by the employer

SUTA

The State Unemployment Tax Act is also a payroll tax paid by the employer and set by each state.

WORK
COMP

Insurance providing
wage replacement
and medical
benefits to employees injured
in the course of employment

PAYROLL/
HR

Accurate and timely
payment of wages along with dozens of other responsibilities.

SAVINGS IN ACTION

David is the owner of a trucking company in Macon, Georgia. David currently has 13 drivers with an annual payroll of $413,000.

Even with a great workers' comp claims history, David's annual costs for workers' compensation insurance were over $72,000.

Working with a PEO company reduced David's work comp costs by over $30,000 annually, allowing him to provide more competitive bids for his services to grow his business.

TRADITIONAL
WORK COMP POLICY

DESCRIPTION DRIVERS
EMPLOYEE COUNT 13
PAYROLL $413,000
WORK COMP RATE 17.44
ANNUAL PREMIUM $72,027

WHEN USING
PEO SERVICES

DESCRIPTION DRIVERS
EMPLOYEE COUNT 13
PAYROLL $413,000
WORK COMP RATE 10.13
ANNUAL PREMIUM $41,837

TOTAL ANNUAL SAVINGS = $30,890

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