Your Business Can Use a PEO for No Down Payment Workers Comp Plans
For many small business owners, workers compensation is a requirement for simply being able to do business. Depending on your state, your industry, and the number of employees you have, the costs here can quickly spiral out of control. One solution is to obtain a no down payment workers compensation policy.
Normally, a business owner is required to put down 25% of the annual premium for their workers compensation plan upfront. Each time the policy is renewed, which is every year, they’re required to continue putting down that big chunk right at the start.
That’s a big dent into your cash flow, and it becomes a major challenge for many businesses. It doesn’t have to be the case though.
That’s because one proven workaround to this is obtaining your workers compensation policy through a PEO company. Using a PEO provider as your intermediary, as it were, you’re not starting your own new policy, but rather you are joining the PEO’s existing policy.
When you initially sign up for your PEO, you will have to pay what’s commonly referred to as an onboarding fee. However, that fee can potentially be as little as almost half the amount of your worker’s compensation down payment. Moreover, you don’t pay the onboarding fee every year. As opposed to the annual worker’s compensation renewal then, you only have to pay this when you get started the first time.
Further, PEO companies provide a huge range of other benefits to small business owners. Specifically for workers compensation, you can potentially save money by getting a low mod rate adjustment, for instance. Elsewhere, you can receive assistance with everything from payroll, to human resources, employee benefits, and office management, all while enjoying cost savings and flexibility.
Working with one of today’s top PEO providers to capitalize on no down payment workers compensation plans is a smart move for your business’s long-term planning. Call us at 407.272.1976 to learn more about how we can help, and we’ll be happy to answer any questions and provide you with a free, no obligation quote.