Are you worried about worker’s compensation? We’re here to help you better understand the systems in play.
This is the fourth and final article in a series. To read the previous articles, click here.
Now that we’ve looked at the traditional market, captive insurance and high deductible programs, what other options are available for business owners? In this final article, we’re examining a Professional Employer Organizations, or PEOs.
Who the plan involves: Owners who want to minimize risk to themselves, regardless of their MOD score.
What is a PEO? A type of company that specializes in payroll, worker’s compensation and human resources. PEOs work with your company to not only reduce your rates over time, but enact plans to minimize the occurrence of future issues.
Pros: A dramatically larger pool of employers, some of which will give you the advantages of each of the three worker’s compensation systems mentioned in the previous articles.
PEOs can lower individual costs by having bigger buckets, great rates.
Can be any combination of the above plans (traditional market, captive insurance and high deductible programs)
Adds claims management and safety programs
Adds HR solutions to minimize hiring and daily employment issues
Cons: You trade off some control of payroll and HR responsibilities to the PEO. You must pay PEO fees, though they are often offset by the savings in comp. This will change the way you run your business.
Bottom line: Every company can benefit from the services of a PEO.
William Hollar works for PEO Select – a fast-growing company that connects businesses all over the U.S. with a PEO ideal for their needs.
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