America is now suffering through its worst economic crisis since the Great Depression as its worst health crises in more than a century continues without an end in sight. Many businesses will fold, and others will slowly reopen in gradual phrases 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’s PEO for Worker’s Compensation Insurance?
How does they differ? A standard worker’s compensation insurance pays the premium that’s 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 an excess of 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, whether it’s 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 be provided with 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 control of the price. 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 the coverage.
Another benefit is the cash flow improvement by decreasing or ending the down payments with a purchase of the 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.