How to Reduce Workers Compensation Premiums
Find PEOs., Consider the downsides of joining a PEO., Appreciate the added benefits of a PEO., Contact PEOs for quotes., Research whether the PEO is legitimate.
Step-by-Step Guide
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Step 1: Find PEOs.
A professional employer organization (PEO) can help lower your workers’ compensation premiums.
The PEO purchases insurance for many different employers at once and can get rates that a larger organization would.You can find PEOs in the following places:
Use the directory at the National Association of Professional Employer Organizations here: http://www.napeo.org/what-is-a-peo/selecting-a-peo/find-a-peo.
Search by state.
Perform a general Internet search.
Type your location and “professional employer organization” into your favorite search engine. -
Step 2: Consider the downsides of joining a PEO.
When you join a PEO, your employees become co-employees of the PEO.
In practice, this means that you will still control your business.
However, the PEO is in control of anything that is related to human resources, such as payroll.For example, before a PEO will agree to work with you, you may need to deal with any payroll arrearages.
You will also need to follow the PEO’s best practices when it comes to human resources.
PEOs also typically contract with one insurance carrier.
They aren’t brokers, who will obtain insurance from many different carriers.
For this reason, you may be stuck with the insurance carrier they select. , Your PEO can handle all sorts of human resources functions for you.
For example, they can handle payroll, employee benefits, and 401(k) accounts.They can also help injured employees return to the workplace as soon as possible. , Before you hire a PEO, you should understand how much they will charge.
Call or contact them online and ask for a quote.
Generally, a PEO charges $500 to $1,500 per employee per year.The PEO may need to visit your jobsite.
Schedule a time that works for you.
You might also want the PEO to perform other human resource functions for you.
Make sure the PEO includes those services in your quote. , Although you may buy your workers’ compensation insurance through the PEO, you are still responsible for making sure you get adequate insurance coverage.
Confirm that your PEO is legitimate:
Ask for company references and check them.
Ask references if they have ever had a workers’ compensation claim and whether they were pleased with how the PEO handled it.
Ask to see the PEO’s certificate of insurance.
Check whether the PEO is a member of a national or state organization for PEOs.
Analyze the contract you sign with the PEO.
If you don’t have experience with contracts, then retain the services of a business lawyer to help you analyze the contract.
Look up the company on Consumer Affairs to read reviews. -
Step 3: Appreciate the added benefits of a PEO.
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Step 4: Contact PEOs for quotes.
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Step 5: Research whether the PEO is legitimate.
Detailed Guide
A professional employer organization (PEO) can help lower your workers’ compensation premiums.
The PEO purchases insurance for many different employers at once and can get rates that a larger organization would.You can find PEOs in the following places:
Use the directory at the National Association of Professional Employer Organizations here: http://www.napeo.org/what-is-a-peo/selecting-a-peo/find-a-peo.
Search by state.
Perform a general Internet search.
Type your location and “professional employer organization” into your favorite search engine.
When you join a PEO, your employees become co-employees of the PEO.
In practice, this means that you will still control your business.
However, the PEO is in control of anything that is related to human resources, such as payroll.For example, before a PEO will agree to work with you, you may need to deal with any payroll arrearages.
You will also need to follow the PEO’s best practices when it comes to human resources.
PEOs also typically contract with one insurance carrier.
They aren’t brokers, who will obtain insurance from many different carriers.
For this reason, you may be stuck with the insurance carrier they select. , Your PEO can handle all sorts of human resources functions for you.
For example, they can handle payroll, employee benefits, and 401(k) accounts.They can also help injured employees return to the workplace as soon as possible. , Before you hire a PEO, you should understand how much they will charge.
Call or contact them online and ask for a quote.
Generally, a PEO charges $500 to $1,500 per employee per year.The PEO may need to visit your jobsite.
Schedule a time that works for you.
You might also want the PEO to perform other human resource functions for you.
Make sure the PEO includes those services in your quote. , Although you may buy your workers’ compensation insurance through the PEO, you are still responsible for making sure you get adequate insurance coverage.
Confirm that your PEO is legitimate:
Ask for company references and check them.
Ask references if they have ever had a workers’ compensation claim and whether they were pleased with how the PEO handled it.
Ask to see the PEO’s certificate of insurance.
Check whether the PEO is a member of a national or state organization for PEOs.
Analyze the contract you sign with the PEO.
If you don’t have experience with contracts, then retain the services of a business lawyer to help you analyze the contract.
Look up the company on Consumer Affairs to read reviews.
About the Author
Matthew Fox
A passionate writer with expertise in crafts topics. Loves sharing practical knowledge.
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