Tag workers comp quotes

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 person’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.

It seems that payroll companies are on the rise, and more and more they are looking for workers’ comp coverage for their clients.

Wouldn’t your payroll clients like to be free of the hassle of yearly audits?
Are they sick of massive deposits and big down payments?
Are they frustrated because they can’t find coverage?

We may be ably to help your payroll company with our “Pay As You Go” workers’ comp program. Premiums can be paid as earned, by rating the current payroll against the correct comp codes. Audits can be minimized, made less painful or possibly done away with completely.

This program is designed for payroll companies and their insurance agents. Please have your insurance agent contact us to find out about this income stream that is being left by the wayside.

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Shown here with strategic partner Jason Irving of Urban Recruiters Staffing, PEO Pros CEO John Will Tenney has written an article for Google Knols discussing the history of PEOs and how they differ from Staffing Companies.

“We get asked this question all the time.” Tenney tells us, “It’s not a simple answer. I expect this will only be the first of a few articles discussing it. For example, with a recovering economy such as we are in today, Staffing makes a lot more sense for business owners that are cautiously expanding their business.”

Here is the link to the Knol. Your comments and reviews are welcomed.

Excerpt: “In many ways, PEOs and Staffing companies are similar, but in fact they cover the opposite ends of the HR spectrum. In this article, John Will Tenney of PEO Pros explains the history and formation of PEOs, and a little of the differences and similarities between PEOs and Staffing.”

Many times a day, we are asked if there is a way to get a discount on workers’ comp premium. In Orlando, other parts of Florida, and indeed nationwide, this is a daily part of our workers’ comp quotes process. There are both short and long answers to this.

Short Answer: “Yes, sort of …”

Long Answer
Every state in the country handles workers’ comp their own way, and not surprisingly, no two states are alike. however, at the risk of generalization, we will put states in two categories: Administrative States and Loss-Cost States. Each is discussed below.

Administrative Rates
Many states set the rates for workers’ comp, or at least the “base rate”. Florida, for example, defines the manual rate for each workers’ comp classification code, with help from the National Council for Compensation Insurance (NCCI). These rates can be modified by various factors, including credits for a drug free workplace, a written safety program, a very complicated and confusing program for construction credits, and for all companies the actual claims experience can be taken in to effect.

Loss Cost Factors (LCF) or Loss Cost Modifier (LCM)
Other states may have a base rate table which is multiplied by the insurance carriers LCM, as determined by historical claims data. In addition, some states let the carriers set their own rates for each class code, which is then put through an extensive approval process.

Stay with us, we told you this is the Long Answer …

So how does this help a business owner get discount rates? There are two options we will discuss today, traditional policies and co-employment solutions using a PEO.

In a state like Florida, the traditional policy rates can only be affected by credits and experience modifiers. Credits are offered for a verified, written safety program (2% discount) and a certified Drug Free Workplace program (5% discount). There are also some very confusing credits for new construction, which have not been a major factor in the last few years, sadly. A company that has been paying comp premium for more than 2 years may also be eligible for an Experience Modifier Adjustment. Every new company starts with a multiplier of 1.0, that is, no modification at all. Have a couple of good years with no claims, that multiplier can be less than 1.0, say .92 or .83 for example. Have a couple of bad years with a lot of claims and that multiplier can go up. There are also programs which can refund premium or pay dividends to policy holders, but these are usually restricted to annual premiums of $50,000 or more.

Using a PEO in a Co-Employment Situation is a completely different scenario. In this case, the PEO becomes the employer of record (for comp purposes among others) and pays whatever rate they pay for their employees. Since the client’s employees are now the PEO’s employees, the client no longer pays comp premium, but instead pays a service charge to the PEO. This number is unregulated and negotiable. It is possible for a safe client to negotiate a much lower rate on workers’ comp. Conversely, a client who can’t get coverage from a traditional carrier (because their risk is actually much higher than the state set rate would bear), can get coverage from a PEO by negotiating an equitable service charge.

So while paying a PEO is technically not paying for workers’ comp insurance (it’s their insurance, not yours), you can get your employees covered at a discount rate.

If you have more questions on this topic please use the contact form below:

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Mike and Starr Mackey

“The first time I even thought about W-2s this year was when our personal copies arrived in the mail” Destinations Unlimited Tours owner Mike Mackey tells us. “It’s a tremendous relief not to worry about that and other HR issues like payroll taxes and workers’ comp insurance. I’m so glad PEO Pros found us a good match for our PEO services.”

Mike and Starr Mackey, pictured here, are the owners of this combination travel agency and charter bus company.

“We like to work with tour groups. Schools, churches and other common interest groups can have us take them to the cruise ship, the big game, or even a safe tour of New York City. We take them to the best restaurants, best hotels, and all of the details are taken care of.”

“The PEO relationship has enabled us to provide proper insurance coverage to work with public schools, department of defense and other heavily regulated agencies. Workers’ Comp was always a black cloud that hung over our head before. Now it is somebody else’s problem.”

“We even have a ‘Magical Mystery Tour’ where the guests are only told how much money to bring, and when they will be back. I’m not going to spoil it by telling you where we are going this time, but we have gone to places like Mobile, AL and toured the Navy Museum, stopped in Panama City Beach for some sun and white sand, and even hit some breweries and wineries along the way. It’s one of our most popular tour packages.”

“Folks enjoy taking us to the cruise ship, because the vacation begins when they step on the bus, and doesn’t end until they get back home. No driving to Miami or Fort Lauderdale. No parking worries. No traffic. Leave the worries to us!”

Destinations Unlimited Tours has been a client of ours since 2008. They have recommended our service to some of their friends in the industry, the best testimonial a client can give!

“We recently had a worker who was out on sick leave” Starr Mackey tells us. “It was so nice to simply make a call to the PEO and find out what we needed to do. They are always only a call or email away.”

Debby Boote

“On a personal level, I like it because we have direct deposit and my money goes right to my bank account” says Debby Boote in Business Development. “And on a business level, I like it because if there is ever a problem or a question I can go to the PEO and they are always there to help out right away.”

Here is a video featuring Mike Mackey, Starr Mackey and Debby Boote from Destinations Unlimited Tours: