Is a PEO (Professional Employer Organization) a good fit for your business? Professional Employer Organizations are a good fit if you are in an industry where it is hard for you to obtain Worker’s Compensation Insurance.
You may have had injuries resulting in cancellation or you may be a newer, higher risk business having a hard time getting insurance. So, in either case you almost have no choice until you have about 3 years of clean history (loss runs). A PEO may also be a good fit if your company would like to delegate your HR, Payroll, Benefits Administration, Medical Insurance and Retirement Accounts to the PEO.
Here’s something to consider:
If you are being pitched on the benefits of a “do it all for you” PEO…
Stop and be sure you weigh out every expense line you are being proposed versus having your own payroll program, worker’s compensation coverage and other programs in place. The typical PEO client we consult with is currently over-spending by $400 – $700 monthly due to high administrative fees and inflated worker’s compensation insurance rates.
Most employers who “needed” a PEO have surpassed the time frame required to get out from under their PEO once they have become insurable on their own. Other employers sign on with a PEO because they were sold on the idea of having an all-in-one solution for their HR, Payroll and Worker’s Compensation Insurance needs.
In these situations, the employer gets stuck on “cruise-control” and for every month they don’t reassess their situation they are over-spending, on average, $400 to $700 per month MORE than what is necessary when compared to what we are able to offer them.
ShaBro Alternative Office Solutions has evaluated enough PEO plans to know we can save every single client money on every single payroll cycle.
If you’d like your current PEO plan evaluated feel free to call our office today and schedule a no-charge side-by-side comparison to see what your actual savings could be.