Archives 2010

Would it comes as a surprise that small to medium business owners are dealing more with unemployment issues these days? Wouldn’t it be great to hand those problems off to someone else?

With the services of a PEO, where the PEO becomes the “employer of record”, it is no longer the client’s responsibility to deal with unemployment issues (such as claims and UE taxes.) That all becomes “Somebody Else’s Problem” (the PEO’s) and the client can continue to build their business.

Allan Jackson, owner of Southeastern Data, explains (in the video below) how a PEO got rid of his unemployment problems in the video below. Southeastern Data is entering their third year as a client of a PEO (placed by PEO Pros.)

Are you a start up PEO that can’t find a master policy?
Don’t panic.

We can help!

PEO Pros has a special department that handles start up PEOs, Staffing and Payroll companies.

In particular we help with Workers’ Comp, General Liability, EPLI and in some cases Health Insurance.

We have experience with start up companies, so much that the carriers have come to rely on us to help the transition from start up to going concern.

Have you heard these or something similar?

• “We don’t do start ups”
• “We require a minimum book of business”
• “Come back and see us when you have 3 or more years experience”

Sound familiar? Don’t despair. We can help.

Use the form below to get in touch with us.

Name

Email

Inquiry

Verify that you are a real person 🙂

From California’s Workers’ Comp Executive Site

California’s self-insured group (SIG) industry suffered its first official failure yesterday when Department of Industrial Relations director John Duncan declared the Contractors Access Program of California (CAP) in default due to insufficient funds. The workers’ comp SIG had less than half of the funding required by the state and efforts to correct the deficit by collecting from members who are jointly and severally liable, have been unsuccessful.

With the declaration of default, DIR transferred responsibility for benefit payments for injured workers to the Self-Insurers’ Security Fund (SISF). Duncan said he understood the seriousness of the action for CAP’s member employers, but maintains it was necessary after remedial actions failed to correct a deficit that exceeds 50% of the group’s required funding. He noted that member employers will be addressed “fairly and equitably.”

The group’s daily operations have been under the control of Bickmore Risk Services since May when DIR wrested control of the SIG from New York-based Compensation Risk Managers (CRM), which now operates as Majestic Capital. While SISF now has responsibility for claims payment it also has access to the group’s remaining assets and security deposit. Additionally, efforts to recoup additional funds from the group’s member employers are expected to continue.

The full scope of the members’ financial liability has not been made public, but DIR says that it had less than 50% of the funding required by state law. A lawsuit filed by 11 members of the group against CRM and brokers is seeking tens of millions of dollars in damages to help off-set their joint and several liability that’s estimated to be in excess of $20 million.

Look for additional coverage in the next premium edition of Workers’ Comp Executive.

Note: There are no PEOs in the SIG that we know of. PEOs are normally required to carry full insurance.

Our insurance agency is now appointed by Progressive Auto Insurance to provide auto insurance coverage for our clients.

We are proud to have this relationship with Progressive! Many of our clients prefer having us take care of their auto insurance needs as well as other business insurance.

Working with Progressive has never been easier. Here is a link to get an auto quote today:

This article was published in “The PEO Insider” in January 2010. Reproduced here by permission. If you click on the images they may just give you a clearer view.

The PEO Insider was doing a special issue on brokers and called on me. I was flattered of course! I know we do some brokering but there are many larger “broker houses” than ours. Stephanie Oetjen, the feature editor, told me that I was considered to be a “high visibility broker, with a significant internet presence.”

Well who could resist that kind of schmoozing. After several edits and sessions with Stephanie this was the finished product.

Page 1 of The PEO Insider article January 2010

Page 2 of The PEO Insider article January 2010

Are you an employer who would like to have one point of contact to deal with all of your insurance problems? Are you tired of having to “look up” which agent handles that particular issue?

Would it make sense to you to have one point of contact to deal with all those headaches? Would it make your life easier to make one phone call and let someone else handle it? We like to call it the “SEP” solution, where it becomes Somebody Else’s Problem.

PEO Pros, and our alliance partners, can help you in these areas:

• Business Owner Packages (BOPs)
• Workers’ Compensation
• General Liability
• Professional Liability
• Employment Practices Liability (EPLI)
• Group and Individual Health Plans
• etc

Health Insurance in the Future. What is this going to mean to my business?
Many employers are asking themselves:
Is this new health bill going to cost me a lot of money?
It is important that you get the facts on how it will affect you. Smart employers are asking experts:

• What options are available?
• Is my business compliant with the new bill?
• Are my employees going to be covered?
• Will I avoid expensive fines?

We have experts available to review your situation. Can we help in all cases? Probably not. Can we help you? Why not contact us and find out?

Sometimes it’s possible to get a better health plan or group benefits through a PEO. Sometimes it’s not. Would you like to be aware of the options available to you?

Our agents are well versed in the confusing world of health options.

It’s very possible you can benefit by having us as a professional partner in this area.

Convenient Links for Business Insurance:

• General Liability Insurance
• Workers’ Compensation Insurance

Southeastern Data is one of the most unique businesses in Central Florida. From their website:

“Since 1996 Southeastern Data has provided recycling & remarketing of of all types of computers & electronic equipment. We offer pickup service across the nation and to a number of locations outside of the country.

Southeastern Data is an expert at recycling all forms of electronics and equipment. We also offer wholesale pricing of refurbished and new-old-stock items at our warehouse location in Oviedo, Florida. Our warehouse is open to the public Monday-Friday, 8:00 A.M. to 5:00 P.M. with other hours available by appointment.”

Allan Jackson, owner and CEO tells us “I wish I’d known about PEOs when I got started. I could have avoided a lot of headaches in our first year of business associated with managing payroll and taxes, but the real benefit early on would have come from expert help with basic HR issues such as unemployment and workers comp insurance. The time and money that I used to spend on that is now completely focused on the business. It’s been a huge upgrade! I also can’t say enough about PEO Pros in helping me find the best PEO solution for our needs at every step in my company’s evolution. My best advice for moving to a PEO relationship would be to make PEO Pros your first call.”

We are also clients of Southeastern Data. We have purchased all of our office computers and other tech items from their high quality collection of previously owned equipment.

Small businesses are challenged with the rising price of advertising. As the number of options increase, the quality of advertising and return on investment are getting harder and harder to track.

How then can a small business find more clients? The internet is certainly a growing field, and making more and more people accessible. The connections being made are at an all time high, and should only continue to grow. Then why isn’t it the answer? Why aren’t small businesses growing at an all time rate?

The most likely reason is due exactly to the growth of the internet. With so many people to meet and be connected with, who is to be trusted? Isn’t that what it comes down to anyway?

The first rule of business, “All things being equal, people do business with people they like and trust.” The corollary of that is “All things being unequal, people still do business with people they like and trust.”

How is trust earned? It’s doubtful that real trust can come from email, online messaging or blogs.

Trust comes from face to face meetings. Networking is one of the best options out there to meet people face to face on a regular basis, and develop relationships.

We recommend the following networking groups in East Orlando:
Build Your Own Business (BYOB) in Orlando
Laid Back Leads Group

We apologize to those of you who tried to contact us. The forms appeared to be working, but were not sending the information to our office.

This has been corrected.

This article is an outline of a talk that our CEO gives to various groups. Please contact us if you are interested in such a talk

Myth # 7: “I don’t need to be on my payroll – I can take distributions.”
Our CPAs have always advised us that even though Subchapter S corps and LLCs allow “distributions” to owners, the IRS expects you to run a payroll and use those distributions for special or unusual circumstances. A failure to run a payroll regularly can “raise a flag” on your return, which may make you subject to an audit.

Myth # 6: “If I have Workers’ Comp insurance claims don’t affect me.”
While it is true that in most cases the full burden of the claim falls upon the insurance company, it is important to remember that an “experience modifier” follows your corporation or business entity throughout its lifetime. Excessive claims can raise this modifier, which will correspondingly raise your workers’ comp premium.

Myth # 5: “A payroll service will relieve me of the worry of paying payroll taxes.”
Some payroll services, especially PEOs, who legally become the employer of record, can certainly mitigate the liability associated with payroll taxes. With a standard payroll service however, it is your FEIN that goes on the return and hence you will be audited if there is a problem. It is true that a reputable payroll service will “stand by your side” at the audit but you will still have some, if not all, of the responsibility. In a PEO situation the lion’s share of the liability rests with the PEO since it is their FEIN that is on the return.

Myth # 4: “Unemployment Claims do not cost me time or money.”
This gets monitored much the same way workers’ comp claims do. The state will keep a record of your claim history and can adjust your rate up or down on an annual basis. Certainly managing your employees properly and terminating them according to correct procedures will reduce your unemployment rate exposure.

Myth # 3: “We have our posters up so we are in compliance.”
Oh really? How old are those posters? Have you checked with all the state, federal and local authorities? Wouldn’t it be nice to have someone do that for you?

Myth # 2: “I’m exempt from Workers’ Comp because I don’t have enough employees.”
This is a great misunderstanding. NO ONE is exempt from Workers’ Comp in the United States of America. If an employee is injured on the job it falls under the Workers’ Compensation Act and the employer is responsible for all medical, legal, and administrative expenses involved with the claim, as well as paying lost wages from time out of work, typically two-thirds of the normal wage.

In most states, you may apply for an Insurance Exemption, which allows you to be self-insured. This depends on the number of employees. In Florida it is 3 or fewer employees besides the owners, or 1 employee in the construction field. You may be “exempt” from having an insurance policy but you still are subject to workers’ comp.

Myth # 1: “I don’t have employees, all my people are 1099 contractors.”
There is no doubt that many people in a contracting situation legally and are truly 1099 contractors. However, this is one of the most widely abused categories in the employment arena today. The 1099 is meant for those people that are truly independent, NOT just a way to avoid paying taxes.

Myth # .5: “I can do it without professional help.”
Good luck with that 🙂

We hope you will view us as a resource. You probably don’t need our services now, but you want the firetruck to know how to get to your house! Some of you might have even “smelled some smoke” while we were talking …