PEO Pros

Workers' Comp Insurance – PEOs

Somebody Else's Problem

Somebody Else’s Problem

Somebody Else's ProblemWouldn’t it be great if employers could make all their employee problems go away? Make them “Somebody Else’s Problem”?

We believe that when the Employee Leasing industry chose “PEO” as their new, politically correct moniker, they chose the wrong letters. We think they should call them Employer SEP’s – where the Employee Problems become Somebody Else’s Problems. When an employer and a PEO form a business partnership, defined by the Client Service Agreement (CSA), many of the risks and responsibilities are transferred (in whole or in part) to the PEO and are no longer the employer’s headache.

Will Tenney talks about the choice of the letters “PEO”

Some of the headaches that can be shifted or at least alleviated include:

Payroll Tax Liabilities

Since the employees are now employees of the PEO for tax purposes, and registered on the PEO’s FEIN, IRS payroll tax audits are not as much of a threat anymore. In most cases the client isn’t even involved. The PEO is audited, shows their records and it’s all over. In rare cases, a PEO might have to produce information supplied by the client, but this happens so seldom you might call it a Payroll Unicorn.

Workers’ Comp Claims

The PEO will be the employer of record, so they will be responsible for paying all workers’ comp premiums, and involved in negotiating the claims. In most states, the experience modifier will stay with the PEO, and the client will not be adversely affected in the future by past claims. In addition, the PEO has safety expertise, training and written programs to put in place to reduce the frequency and severity of claims.

Unemployment Claims

Similar to workers’ comp, this becomes the responsibility (and liability) of the PEO, who is the employer of record. The State Unemployment Tax Act rate (SUTA rate) of the PEO is the SUTA rate that gets affected (in most states. There are some exceptions) and the client can maintain a clean record. In addition, the PEOs are much more experienced at handling and negotiating claims and experience has shown they are much more effective at removing false claims.

Employee Lawsuits for Employment Practices

Again, since the PEO is the employer of record, some or all of the liability shifts to the PEO in these cases. This could include:

  • Sexual Harassment
  • Wrongful Termination
  • Discrimination
  • Unfair Hiring Practices

… to name but a few.

If you would like to make some of your employer problems become Somebody Else’s Problem, please feel free to use the contact form below, or call us at 407-490-2468

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PEO Master Policies Available

We are a provider of master policies to PEOs, Payroll and Staffing Companies for Workers’ Compensation Insurance.

Convenient Links for PEO Owners:

There are several viable options for PEO owners in today’s comp market, including:

  • Guaranteed Cost programs
  • High deductible programs
  • Captive Loss Funds
  • Offshore Loss Funds
  • “Rent-a-captive” Segregated Portfolios

If you would like to hear more about our PEO master policy options for workers’ comp please contact us using the form below:

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Employment Practices Liability Insurance

PEO Solutions

Why would a business owner use a PEO to provide solutions to employer headaches with traditional payroll and insurance methods?

“PEO” stands for Professional Employer Organization. In almost all states this is a licensed and regulated corporation which practices in the field of employee leasing or co-employment.

In an employee leasing scenario, the PEO becomes the Employer of Record of all the client’s employees for purposes of payroll, taxes, insurance and HR compliance. Other services are available if necessary. This is also true in a co-employment situation, but some o the responsibilities are shared. The major share of the liability of having employees is shifted to the PEO, thus enabling the client to concentrate on building their business, instead of being bogged down in the day to day “busy work.”

Our typical client is an employer who is:

  • Worried that their current payroll situation may be making mistakes
  • Sick of the hassles of workers’ comp insurance
  • Nervous about possible unemployment claims
  • Does not want to be burdened by payroll issues, such as payroll taxes
  • Concerned about keeping their best employees
  • Worried about maintaining compliance with HR standards and regulations
  • Alarmed at the prospect of complying with new health care laws

Potential clients are employers who suspect they are overpaying for insurance and HR services and still not assured of proper or complete coverage.

Our broker division, EmployerNomics, may be able to assist those employers with employee retention and peace of mind by helping them to supply proper benefits.

Call EmployerNomics at 800-788-8343 or use the form below if you have questions.

There are several other articles under this heading, hold the mouse over the blue bar and select from the drop down menu.

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Obamacare and Complexity

What complexity does Obamacare add to employers?“What effect will Obamacare have on employers?”

It’s a question being asked by many small and medium sized business owners.

Recently overheard at a NAPEO convention: “If PEOs help business owners navigate through complexity, then we just got 2200 pages of complexity.”

“I don’t want any more employer problems” one business owner told us, “I’ve got enough headaches as it is. Now I have to follow all the guidelines in this 2200 page mess? Help me make all these problems go away …”

Using a custom PEO solution may not be the answer for all employers. Some do not have problems in any of these areas:

  • Payroll and W-2 compliance
  • Workers’ Compensation Insurance coverage
  • Workplace safety procedures
  • Drug free workplace procedures
  • HR compliance and Homeland Security directives (I-9s)
  • Unemployment Insurance Rates and issues
  • “Re-employment” assistance
  • Proper paperwork and documentation of disciplinary procedures
  • Employee handbooks
  • Proper application of the Affordable Health Care Act
  • Proper benefits administration
  • Employment Practices procedures and liability insurance
  • Workplace signage and posters
  • ADA compliance and required access
  • Payroll deductions and compliance with garnishments
  • Preventing employee tort situations
  • Legal assistance in employee lawsuits

Common problems for employers? Maybe not. Possible? Yes. Keeping employers up at night? Definitely.

The new tax laws are aimed at small and medium sized business owners. They will carry the burden of funding our growing government. They do not have full-time lobbyists to prevent it. They have a target painted on their backs.

So how can an employer make all this “go away”?

In a Custom PEO Solution, the co-employment contract allows the PEO to become the employer of record and assume responsibility (and shared liability) for many of these concerns. Even in cases where complete liability is not assumed, isn’t it preferred to have a professional partner?

So if an employer wants to get rid of the headaches and worries that keep them from sleeping well, why not push off some of the liability and responsibility to a PEO?

Why not make it Somebody Else’s Problem?

Contact us using the form below if you think you would like to get rid of some of these problems.

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Is PEO Comp Better Than Traditional Comp?

Workers’ Comp Better with a PEO?

Is PEO Comp Better Than Traditional Comp?While there are many advantages to having a PEO manage your workforce, many times it is troubles with Workers’ Compensation Insurance that brings the client to a PEO.

Is it better to be with a PEO? To have a professional partner to assist you with risk management? We of course, have a bias, but here is another point of view. This is an excellent article written by Antony Kelly
Antony Kelly’s Article

Here are some excerpts we particularly liked:
“Simply put, traditional workers comp coverage will require a small business owner to make an upfront deposit, based on an estimate of their gross annual wages. The company will send quarterly information to the insurer, who then calculates the bill and requests payments. Since these are all estimates, however, an audit is required, including a reconciliation process that will help bring the numbers together. Unfortunately, if the deposits and quarterly estimates do not cover the total amount due, the company is mandated to reimburse the carrier at the end of the year. This could potentially be a substantial cut to the small business personโ€™s cash flow. Interestingly enough, payments that extend beyond the balance may roll over into next years beginning balance; nice for the carrier, bad for the business owner. ”

“PEO companies not only provide you with pay as you go workers compensation but also outsourced benefits and a variety of resources that help you comply with employment related issues and administrative paperwork. In fact, many businesses under 100 employees should be able to significanly reduce their in-house administrative burden through the use of a PEO, which provides additional value over traditional and pay as you go workers comp plans. ”

Thank you to Antony Kelly for writing this article, and to Shane Underwood for finding it.

When You Don't Need a PEO

When You DON’T Need a PEO

When You Don't Need a PEOPeople ask us when they need a PEO, or even why?

Hard question to answer with anything other than “Maybe you don’t!”

Our staff can spend a lot of time telling you why you should have a PEO, and you can probably find some of that on other parts of this site. For fun though, and maybe for educational purposes, we asked them, “When DON’T you need a PEO?” Well they tossed it around the bullpen and surprise surprise, they came up with at least 7 scenarios when a PEO is not called for.

Here’s some situations they gave us when you DON’T need a PEO:

      1: You don’t have any employees
      2: You have employees but they cause no problems and create no risks
      3: You are a government entity who cannot be sued
      4: You are a very large company with an internal legal and HR department
      5: You are a very large company with annual workers’ comp premiums in excess of $250,000. (In this case you should have your own, custom comp solution, such as a captive or a self funded plan. Ask us about that)
      6: You are a short term company, not likely to be around for a while
      7: You will never want to sell your company, or facilitate an easy ownership transfer

Can you think of some others? Please let us know!

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Florida PEO Services

PEO Services in Florida

Florida PEO ServicesFlorida is the birth place of PEOs, so there is rarely a problem finding a match for your specific needs here.

PEO Pros is an independent broker, not affiliated with any one PEO but has contracts and agreements with over 125 choices. Doesn’t it make sense to let the Pros find the best match for you?

PEOs in Florida can provide the following services to name a few:

  • Payroll Service in Florida
  • Workers’ Comp in Florida (or Florida Workers’ Comp)
  • Assistance with Unemployment Insurance in Florida
  • Assistance with Health Insurance in Florida

We have PEO partners in the following locations:
Orlando, Tampa, Jacksonville, Miami, Ft. Lauderdale, Sarasota, Bradenton, Ft. Myers, Port Charlotte, Panama City, Ft. Walton Beach, Tallahassee, Pensacola, Destin, Orange County, Lake County, Osceola County, Seminole County, Volusia County, Brevard County, Okaloosa County, Santa Rosa County and Polk County; just to name a few.

Here is an article that explains a little more about PEO Services: Why Use a PEO?

If you would like to get some more information on a quote, please use the form below:

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California State Declares Default for Contractors SIG

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-Insurersโ€™ 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.โ€

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.

Employment Practices Liability Insurance

“Pros and Cons of Working with PEO Brokers”

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

Page 2 of The PEO Insider article January 2010

Business Insurance

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: