PEOs using a traditional carrier will pay a 19.4% “state fund assessment” to replenish the state fund, which was depleted by a corrupt administration several years ago. Oddly, the state fund itself only charges 6.5% to clients for the same fund, which gives it nearly a 13% advantage right from the start.
However, there are PEO options in NY that can be competitive in many situations. Even if direct savings cannot be achieved on workers comp premium, there are other advantages available, such as reduced rates for unemployment assessment, risk sharing, HR support, liability sharing and other PEO benefits.
The PEO industry is alive and well in NY, even if it is not driven by workers’ comp savings as it is in other states.
Here is an article that explains a little more about PEO Services: Why Use a PEO?
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