Can You Switch to a PEO After the New Year?

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The New Year is quickly approaching and if you’re a business owner you may not have gotten all of your ducks lined up in time for January 1. Were there things you wanted to do or change in 2014 that have fallen through the cracks and won’t be ready in time?

There are lots of vendor switches or new services contracts that begin on January 1 out of the convenience of having annual contracts, but in this article we’re addressing one particular type of services company: the PEO.

Whether you’re a company looking to engage in a PEO contract for the first time, or a company that already works with a PEO but is looking to make a switch, you are probably a little bit nervous about the transition. Is it going to be an administration nightmare? Do I have to wait until next year to engage in a new contract because there’s no time left in 2013?

In short, no. It’s not going to be an administrative nightmare, and contrary to common misconception, a new PEO contract can begin at any time of the year. If you’re unhappy with your current PEO or in immediate need of cost reduction, you really shouldn’t wait an entire year to correct your situation.

Employer Solutions Plus is skilled at analyzing and delineating current PEO contracts to ensure the easiest “exit strategy” possible. We review all payroll taxes to ensure that no amount of money has been put toward SUTA, Social Security, Medicare, etc. in advance, and that the amount of health insurance deductibles that have already been paid in 2014 don’t end up being forfeited.

We also work with a handful of PEOs that are willing to offer credits for taxes or benefits already paid if there is no way to ensure a smooth transition without overlapping or duplicated costs. So, while the most convenient time of the year would have been January 1, know that you are not out of luck!

Employer Solutions Plus can identify the most convenient (but also the most cost-effective) time frame for making the switch! Call us at 727-698-6207 if you’d like some more information.

The Most Important Question to Ask When Shopping for a PEO

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Shopping for a PEO? If so, you’ve got a lot of things to compare and the situation may feel as if you’re comparing apples to oranges. Different pricing structures, different services, different benefits … So much to look at and consider!

One of the biggest mistakes that business owners make when shopping for a PEO is selecting the one with the best overall price tag. The most important question to ask before signing a contract is “Will you ‘unbundle’ your billing?” Breaking down the “all-encompassing plan” will permit you to know exactly what you’re paying for, and how much – making the comparison from one PEO to another a lot easier.

We know that analyzing proposals takes time away from your busy day and profitable business activities, but forgetting to ask this simple question and simply selecting the best-priced can cost you in the long run!

At Employer Solutions Plus, our dedicated staff of PEO experts can prepare a custom analysis of proposals for you upon request and we’ll break down each and every component of the PEOs’ proposed contracts. Benefits to benefits, payroll to payroll, admin to admin – what you’re paying for should be clear!

Clients of Employer Solutions Plus save themselves time, money, and stress. Call today to take the guesswork out of PEO cost analysis: 727-698-6207.

Can I Keep My Workplace Benefits Plan if I Engage a PEO?

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As you probably know, PEOs offer the following benefits: relief from the growing burden of employment administration, improved employment practices, improved workplace compliance, HR assistance, payroll services, risk management, comprehensive employee benefits packages, and so much more!

When it comes to benefits particularly, many companies “win” through the co-employment relationship. By pooling together employees from multiple client companies, PEOs bring forth tremendous purchasing power – often passing along low rates, great options, and additional benefits you may not have previously been able to offer your employees.

But, what if you’re a young and healthy office that already celebrates low health insurance rates? Whatever the PEO is offering you may actually cost more than what you have in place for your employees.

Or, what if your current plan has extremely robust benefits such as vision, dental, and coverage for various specialists? Can you carve out the cost of benefits from a PEO contract and leave your existing plan in place?

All PEOs are different, but in most cases the PEO will consider it and it’s absolutely worth asking. If they are not willing to take employee benefits out of the proposed contract, and you are beyond happy with your existing plans and prices, we recommend that you keep shopping for a PEO.

You don’t need to settle for a PEO contract that isn’t the perfect fit for your unique situation. If you proceed with the PEO’s proposed benefits plan, you may be paying for plans you won’t necessarily utilize or dropping a plan that your employees are really happy with – resulting in employee dissatisfaction.

Please contact Employer Solutions Plus if you’re having trouble finding the perfect PEO. We represent countless PEOs across the country, many of which don’t require signing on to their insurance plan if you’d like to keep your own.

How Do PEOs Work With You to Lower Workers Compensation Rates?

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Many PEOs provide workers compensation insurance through the co-employment relationship, which takes some liability off your plate as a business owner. Because liability is shared, it should be in the PEO’s best interest to limit injuries, increase workplace safety and simultaneously lower your workers compensation rates.

A great PEO will work with you in three distinct ways to accomplish this:

Hands-on Risk Management: In high risk industries especially, it’s important for risk managers to see the workplace and your ways of conducting business firsthand. Risk assessments help identify areas that are an “accident waiting to happen” or pose a potential threat to you and your employees. Did you know that the small task of employee hand washing (or lack thereof) is the single most cited factor in outbreak investigations?  Your business needs to be equipped to stand up against aggressive lawyers in the event of a lawsuit. Your business may have overlooked areas that could result in a lawsuit or claim.

Safety Programs: PEOs can design a workplace safety program, and even organize and conduct safety trainings to ensure that employees are properly educated, aware of potential harms, and perform work more cautiously. It has been proven that when employees fully understand safety manuals and have resources (such as live demonstrations) available to them for additional help, workplace safety increases. Fewer injuries… fewer claims… fewer dollars to spend on workers comp!

Claims Management: Several claims against your business, and several lost claims, will undoubtedly increase your workers compensation rates. From an insurer’s eyes, you’re considered high risk.  PEOs manage claims for several million workers across the country as part of their service to small businesses. They are experts in risk management and go to bat on behalf of your business if and when a claim arises.

Ask what types of safety programs would be implemented or enhanced by your PEO in order to lower the number of injuries or claims from your workforce, and be wary of the PEO willing to sign you on without a thorough analysis.

If a PEO is willing to sign on your company without a thorough analysis, this may be a red flag. PEOs should ALWAYS care about your workplace safety and the amount of risk you have.

To learn more about risk management, safety programs, claims management, and what the ideal PEO relationship should look like, contact Employer Solutions Plus.