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One of the unforeseen negatives of the Affordable Care Act was increased costs for workers’ compensation insurance, coming both from higher taxes assessed to insurance companies and higher costs of claims. The claims costs are on the rise due to more dependance on workers’ comp vs. traditional health insurance, increased medical costs and the big one, increased legal fees.

As the costs rise, the profit margins diminish. Naturally, the carriers are seeking to reduce their risks to maintain acceptable profit margins. This has led to a “hard market” where risks that were previously accepted are now being cancelled or non-renewed.

Staying “Off the Radar”

It is important to any employer who depends on having reliable workers’ comp insurance to remain off the radar of the carriers and their underwriters. The squeaky wheel get’s the grease, or on this case, the cancellation.

Here are some tips to stay off the radar:

1: Do not shop your workers’ comp policy right now. This will only draw attention to you or your company. Many lesser experienced agents use software that “shotguns” your application to several carriers, and several intermediaries who may duplicate your submission. Nothing sends a red flag to an underwriter more than seeing a submission come in from multiple sources at the same time.

2: Don’t do anything to jeopardize your policy. Don’t hide information, improperly describe working conditions or in any other way try to deceive your agent or your carrier. This is not the time to try to get them to change you to a lower priced code.

3: Do everything you can to minimize claims. Institute a safety program, and if you already have one, make sure everyone is following it.

4: Make sure your website does not advertise you doing “high risk” activities. We’ve seen landscaping company websites showing workers on the roofs of houses, cleaning out gutters. That is NOT in the landscaping comp code description.

5: Pay your premium on time and in full. Slow pay and low pay are great ways to get “on the radar.”

Below is a video of our lead agent John Will Tenney with further discussion:

If you would like more information please use the contact form below.

What can possibly go wrong with a small business?

Why would a small business need a professional HR partner?

Isn’t that a waste of time and money?

No one wants to fine us do they?

Our lead agent, John Will Tenney, appears below in a candid video discussing this situation:

Business owners, if you’ve ever asked yourselves these or similar questions, consider the recent judgment handed down in Georgia where a business was fined 1.7 million dollars for I-9 violations. That’s right, $1,700,000. If that’s not a significant amount of money to you, there is no reason for you to keep reading.

What is an I-9 Form?

The Employment Eligibility Verification Form I-9 is a U.S. Citizenship and Immigration Services (USCIS) form. It is used by an employer to verify an employee’s identity and to establish that the worker is eligible to accept employment in the United States. (*1)

The form requires documents that establish both identity and employment authorization. The USCIS defines these documents in three “columns” on the form: A, B and C.

Column A are documents that establish both, and if one of these can be documented, there is no need to go to the other two columns. Examples of a column A document are:

• Passport
• Permanent Resident Card
• Alien Registration Receipt Card
• Employment Authorization Card (*2)

Column B are documents that establish identity only and include:

• Driver’s license or identification (ID) card issued by a state or outlying possession of the United States, provided it contains a photograph or information such as name, date of birth, gender, height, eye color and address
• ID card issued by federal, state or local government agencies or entities, provided it contains a photograph or information such as name, date of birth, gender, height, eye color and address
• School ID card with a photograph
• Voter’s registration card
• U.S.military card or draft record
• Military dependent’s ID card
• U.S.Coast Guard Merchant Mariners Document (MMD) Card
• Native American tribal document
• Driver’s license issued by a Canadian government authority

Acceptable Column B Documents for persons under age 18 who are unable to present a document listed above:

• School record or report card
• Clinic, doctor or hospital record
• Day-care or nursery school record (*3)

If a Column B document is presented, a Column C document must also be provided to establish authorization to work in the USA.
Examples of Column C documents are:

• U.S. Social Security account number card that is unrestricted. A card that includes any of the following restrictive wording is not an acceptable List C document:
  NOT VALID FOR EMPLOYMENT
  VALID FOR WORK ONLY WITH INS AUTHORIZATION
  VALID FOR WORK ONLY WITH DHS AUTHORIZATION
• Certification of Birth Abroad issued by the U.S. Department of State (Form FS-545)
• Certification of Report of Birth issued by the U.S. Department of State (Form DS-1350)
• Original or certified copy of a birth certificate issued by a state, county, municipal authority or outlying possession of the United States bearing an official seal
• Native American tribal document
• U.S. Citizen ID Card (Form I-197)
• Identification Card for Use of Resident Citizen in the United States (Form I-179)
• Employment authorization document issued by DHS. Some employment authorization documents issued by DHS include but are not limited to the Form I-94 issued to an asylee or work-authorized nonimmigrant (e.g., H-1B nonimmigrants) because of their immigration status, the unexpired Reentry Permit (Form I-327), the Certificate of U.S. Citizenship (Form N-560 or N-561), or the Certificate of Naturalization (Form N-550 or N-570). A form I-797 issued to a conditional resident may be an acceptable List C(8) document in combination with his or her expired Form I-551 (“green card”). For more information about DHS-issued documents please contact customer support. (*4)

How Can Your Business Avoid I-9 Problems?

Are your I-9s filled out properly? Could you handle a USCIC (formerly the INS) audit today?

If you’ve though about making this “Somebody Else’s Problem” perhaps you should contact us and let us find a Professional HR Partner, a PEO, to take this problem away from you. Please use the form at the bottom of this screen to contact us.

References:
(*1) Wikipedia
(*2) USCIS Website List A Documents
(*3) USCIS Website
(*4) USCIS Website List C Documents

As part of our strategic and contractual alliance with Stonehenge Insurance Solutions, we are happy to work with a growing Property and Casualty insurance agency, Hourglass PC.

Based in Tequesta, FL, Hourglass is expanding throughout the state, and eventually hopes to have offices nationwide.

Senior Agent Greg Siebern tells us, “We are focusing on the personal lines of home and auto, as well as the small business products such as general liability, workers’ compensation and business owner packages.”

As part of the marketing plan, Hourglass is sponsoring the Orlando Runners and Riders cycling team, Hourglass Cycling. On the belief that more and more business owners and C level executives are engaging in amateur sports such as cycling and running, Hourglass wants to take a leadership position in the Health and Wellness industry.

“Cycling is the new golf.” Will Tenney of PEO Pros tells us, “When you are riding in a group of 50 to 100 cyclists for several hours every weekend, there is conversation going on at all times. Where there is conversation there can be networking. Where there is networking, there is opportunity to help.”

Jason Irving returns to us as a client with his new company, Engenium Staffing, a technical, engineering and professional recruiting and staffing firm.

“PEO Pros was and still is our best option for securing workers’ compensation and other insurance products.” Jason tells us, “We come here first and never need to go anywhere else. Now that they are partnered with Stonehenge Insurance and Hourglass Property and Casualty, they can take care of our other needs as well.”

We are happy to provide Jason and his company with workers’ comp, general liability, umbrella liability and even have one of our partner agencies working on his homeowner’s policy.

Here is a short interview with Jason where he tells us of some exciting positions available in his industry:

Why does a PEO need an insurance agent for their master workers’ comp policy? What does an agent or agency know that they don’t?

Why not just go direct? Cut out the middle man! Doesn’t it cost more money to have an agent involved?

Sounds good but in “real life” things don’t work out that way.

Here are some myths exposed about using an agent in the PEO Master Policy process:

Myth #1: Using an agent will cost the PEO money
Sounds reasonable doesn’t it? After all, the agent gets a commission and it’s a zero sum game isn’t it?

No it’s not. Carriers pay commissions to internal sales people if there is no agent involved, since the commission is already budgeted in to program costs. Also, an agent can negotiate a better deal, not having to worry about conflict of interest problems.

We recently examined two similar, master policy with a captive type deals from the same carrier. One with an agent, one direct. Guess which deal had more profit built in for the PEO. Go ahead. Guess.

Myth #2: The agent doesn’t do anything except for initial binding and renewals.
This one may have some truth in it. These agents are called “Star Trek” agents. They “beam in” for the renewal and then “beam out” again, not to be seen again until next year’s renewal. These agents don’t hold on to clients very long.

A good agent, with a good agency, will provide support on almost a daily basis. Processing new client submissions, advising on risk management, issuing certificates, etc, are all functions of a healthy agency in the PEO / carrier relationship.

Myth #3: Agents can’t help out with problems
Who is better to act as a third party negotiator but your agent? Licensed and trained to do so, an agent, with the power of their agency (and their book of business) often has significant leverage with a carrier, and can greatly influence the outcome of disputes. Certainly it always helps to have another view point in a disagreement.

What it comes down to is who do you trust with your money? When you business is a must, who do you trust?

Can making a mistake in hiring or firing an employee cost you money? Your business? Your personal possessions?

What do you think in this litigious society?

You may be expecting an insurance agency to recommend getting Employment Practices Liability Insurance (EPLI) and it’s not a bad idea, but how about avoiding the need for it as much as possible in the first place?

Is it possible to know the right way to do everything with employees? Possible, but easy? No. It would certainly require staying on top of all the latest laws, practices and codes. Sounds like a lot of research to us.

Wouldn’t it be easier to have it be Somebody Else’s Problem?

Entering in to PEO relationship may be an easier (and safer) solution. After all, it is their job to handle all the employee issues related to employment. In most cases their EPLI policy offers you, the employer, some coverage as well.

Here is a brief story from one of our clients:

“A few years ago we had an employee who was not performing satisfactorily. We didn’t know what to do. She was very well liked and a personal friend of ours. We tried to talk to her but she told us what ‘we wanted to hear’ and still failed to do her job satisfactorily.

We decided to call our PEO. After a very relaxing call we asked ourselves, ‘Why didn’t we do this before?’ After all, they are professionals aren’t they?

They handled it very well. They called our employee and asked if she knew what her job duties were. She listed them fairly accurately. They asked her if she could complete those tasks in the next two weeks. She said yes. They scheduled a phone meeting at the end of the two weeks. They went down the list with her and asked her if she had completed the tasks. Not surprisingly, she hadn’t completed more than a couple. They asked her ‘What should we do?’ She said ‘I guess I shouldn’t be at this job’ and they offered her a chance to resign rather than be terminated for cause. She took it.

When she handed in her resignation to us she told us that the PEO did a great job and she apologized for wasting our time. We took her out for a farewell lunch and she told us she already had a new position lined up. In fact, she entered a new career that suits her better and we are still friends. FOrgive us for stealing someone else’s tag line but:

‘That was easy’

Thanks to PEO Pros for putting us with such a Professional Employer Organization.”

If you want to have less stress and a more comfortable relationship with your employees, consider asking us to match you with the right PEO.

At PEO Pros, we are your professional PEO matchmakers. Use the contact form below for more information.

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All of the sites below are related to PEOPros.com and were affected by redirect problems. We switched from Windows to Linux servers in order to allow better service. We wish to thank our technical partners at NewTek for their help in this transition. They are a fantastic web provider with the best support system we have yet encountered.

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Certain parts of this website and others maintained by Mid Florida Digital may experience difficulties during this time, including
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This transfer was completed Thursday, March 27th, and we are now watching for any residual errors.

When is a worker an employee?
The IRS and state tax authorities are targeting the workforce that is incorrectly being classified as “1099 contractors” when in fact they are employees.

Why Are They Cracking Down?
The loss to tax authorities by treating legitimate employees as 1099 contractors is substantial. The employer is avoiding withholdings for workers’ comp premium, income tax, social security and Medicare. But the big reason?

Unemployment taxes.

This has become a serious issue not only on a state level, but also federal. Many states have depleted their “re-employment” funds and are relying on federal loans to pay benefits. Several states are behind in their loans and have seen their federal unemployment tax rate increase. Florida, for example, is three years behind in their loan payments and the rate has been increased from 0.8% to 1.7%. (The current federal procedure is to increase the rate 0.3% every year the payments are not made.)

So the employers who are incorrectly paying “employees under 1099” face serious fines, interest, back taxes and penalties.

In the following video, Remax of Avalon Park interviewed agent John Will Tenney to discuss the question:
When is a Worker a W-2 Employee vs. a 1099 Contractor?

Employers should be wary.  Under a recent initiative from the White House, the IRS is taking a dim view of incorrectly classified employees.

For the record, there is no such thing as a “1099 Employee.”  It’s W-2 employee or independent contractor.

So How Do You Know?
The State of Florida uses a list of questions which can be described as “enigmatic” at best:

A “Yes” answer for the following questions indicates that the worker is an employee:
1. Does the business provide instructions to the worker about when, where and how he or she is to perform the work?
2. Does the business provide training to the worker?
3. Are the services provided by the worker integrated into the business’ operations?
4. Must the services be rendered personally by the worker?
5. Does the business hire, supervise and pay assistants to the worker?
6. Is there a continuing relationship between the business and the worker?
7. Does the business set the work hours and schedule?
8. Does the worker devote substantially full time to the work of the business?
9. Is the work performed on the business’ premises?
10. Is the worker required to perform the services in an order or sequence set by the business?
11. Is the worker required to submit oral or written reports to the business?
12. Is the worker paid by the hour, week or month?
13. Does the business have the right to discharge the worker at will?
14. Can the worker terminate his or her relationship with the business any time he or she wishes without incurring liability to the business?
15. Does the business pay the traveling expenses of the worker?

A “Yes” answer for the following questions indicates that the worker is an Independent Contractor:
16. Does the worker furnish significant tools, materials and equipment?
17. Does the worker have a significant investment in the facilities?
18. Can the worker realize a profit or loss as a result of his or her services?
19. Does the worker provide services for more than one firm at a time?
20. Does the worker make his or her services available to the general public?

Some of the questions make sense while others have employers scratching their head and saying “huh?”

Where Can I Get Answers?
We strongly suggest consulting an HR expert or even your CPA.  If you can’t get answers there you can always contact us at PEO Pros – 800.788.8343

Why is pay as you go workers’ comp insurance the right choice for so many businesses these days?

What is Pay as you Go?
In this video clip, CEO John Will Tenney was interviewed by a local real estate office and answers a few questions about Pay as you Go Payroll and Taxes, as well as Pay as you Go Workers’ Comp. Both of these business options can help reduce costly audits and large bills at the end of a fiscal quarter, or the fiscal year.

A big thank you to Rick Aguirre of Remax Realty of Avalon Park for his help with the video.

Pay as you Go for Workers’ Comp
A “standard” workers’ comp policy comes with some “baggage” that many business owners would like to avoid. Not only are there extra fees for a “standard” policy and a possibly expensive audit every year, there are also some added risks. Why else are so many employers now looking at alternative methods? In today’s economy and business environment it pays to be flexible and innovative.

You may be asking what kind of baggage there is. Have you ever asked these questions?

• Who wants to pay a large premium deposit?
• What is this “expense constant” thing they charge?
• Why is it an estimate?
• Why is there an annual audit that usually ends up costing the business owner more money?
• Why is the timing on the big payment always so bad?
• Why are they telling me I am “mis-coded”?

Does any of this sound familiar in your business? How about these?

• Have you ever wondered why they can’t just take the comp premium at the same time you do payroll?
• Did you even know there are “Pay as you Go” workers’ comp insurance programs available?
• Is the only reason you are NOT doing pay as you go because you think it gives up control of your money?
• What is Pay as you go workers’ comp?”

All good questions. Here are some basic answers. (Please contact us to get more answers.)

Workers’ Comp premium is figured as a percentage of payroll for each employee in each “class code.” A “class code” is based upon the job description of the employee. For example, clerical employees and roofers have a different class code and of course a completely different rate of premium. “Mis-coding” is when the people are actually working at, or have different duties than those described in the class code.

PEO Pros functions both as a licensed insurance agency and employer consultants to assist employers in this area. Usually this involves placing the employer with a payroll service, or even a PEO. In many cases the payroll service is optional. Yes, you can still enjoy the transferred liability of a PEO without giving up your payroll.

The advantages to pay as you go services are many but here a few headaches that go away:

• Workers’ Comp annual audit is no longer needed
• Tax forms will be filed by the payroll service
• Large premium deposits go away
• Fewer problems predicting cost of employees
• Easier to add employees without incurring insurance increases
• Since reporting is more frequent (each payroll) changes in job description will likely result in less “mis-coding”

If any of this addresses a problem with your business or company, you may want to give us a call at 800.788.8343 or use the form below to contact us with your inquiry:

Our property and casualty agency has been creating strategic alliances with other large agencies to supply even more markets for business insurance, both to the traditional business owner and PEOs.

Agencies we work with include:
Stonehenge Insurance Services – PEO workers’ comp
Hourglass PC – PEO workers’ comp
Cypress Risk Management – large workers’ comp policies
Pontell Insurance – Business and personal lines
Petrucci Insurance – Business and personal lines
Corsair Insurance Agency – Doctor and Lawyer Professional Liability
Elite Insurance – Business and personal lines
I-surance, LLC – health insurance professionals