America is now suffering through its worst economic crisis since the Great Depression as its worst health crisis in more than a century continues without an end. Many businesses will fold, and others will slowly reopen gradually after the lockdown is lifted. If your own a small or medium-sized business, you should consider opting for a Professional Employment Organization to provide your Worker’s Compensation insurance.
What Is PEO for Worker’s Compensation Insurance?
How do they differ? A standard worker’s compensation insurance pays the premium based on the activated payroll for the fiscal policy year. With a PEO, small companies pay the anticipated amount and calculate the difference. At the year’s end, you’ll receive a check, have excess credits to check your account, or receive an invoice on the payment and the personal income taxes. The payment comes from the earnings or is obtained as a fund or a certain amount of money you owe them. If refunded, the money will be returned to you from your insurance company or deposited by the government. With this “pay as you go” plan, you won’t have to worry as it allows you to pay what you owe to the insurer.
Most states will have a PEO as an option. If your state doesn’t have it, you may contact your commercial insurance agency directly, ask your state agency for an extended payment plan, or inquire about self-insurance.
This employee leasing plan helps you outsource responsibilities for Human Resources, payroll, benefits, and risk management. They’ll take control of it all as it allows you to focus on your company’s business operations. As a co-employer, this would provide many beneficial advantages to your employers. Depending on the size of your employees in the PEO, they can obtain volume discounts for your workers. If larger, everyone would receive better health insurance, disability insurance, 401K plans, and other benefits any small company can’t afford.
One of the main selling points of having a PEO with your company is affordable benefits for everyone. And their number one reason for joining one is the exceptional price control. Most large nationwide insurance companies will have PEOs as they’ll restrict their services to one state or geographical region to be utilized by smaller insurers. The larger ones will have a unit to handle claims to provide coverage.
Another benefit is the cash flow improvement by decreasing or ending the down payments by purchasing worker’s compensation insurance in Florida. Depending on the size of your company and the number of provided services, this may allow you to pay monthly premiums similar to a “Pay as You Go Program” provided by some worker’s comp insurers.
When you return to work in your home state, consider a PEO to help you lighten and lift your burdens. In the end, everyone wins with this 50/50 deal.