Why You Should Consider a PEO for Your Work Compensation Coverage If You Are Using the State Fund

by | Oct 22, 2012 | Professional Employer Organization (PEO), Staffing Company, Workers Comp, Workers' Compensation Insurance

Workers Compensation State Funds are often called the “Insurance of last resort”. Since all employers need workers compensation by law, each State has set up a State Fund or Pool that has to accept all employers–no matter their risk profile or insurance loss history. This means that, if you are using the State Fund, and you are not a super high risk, but could not secure or afford insurance through a direct carrier, you are probably paying for someone’s else’s poor work comp history.
Instead of using the State fund, a staffing firm should consider a Professional Employer Organization (PEO) to keep workers compensation costs to a minimum.

By using a PEO or Professional Employer Organization for your workers compensation coverage, you get these benefits:

  1. Usually lower rates than the State Funds.
  2. Assistance with managing your work comp claims.
  3. Payroll and human resource support.
  4. You have less employer liability
  5. No deposits/usually no deductible- all payments are pay as you go.
  6. Paychecks printed in your office
  7. Administration of new healthcare plan (if needed)

PEO’s enable staffing companies to outsource payroll administration, employee benefits, and worker’s compensation benefits, while reducing cost and saving labor.
Essentially, PEO’s provide payroll-processing services combined with worker’s compensation benefits at rates that are often below State funds and direct carriers.

A PEO’s assumes the responsibilities of payroll tax compliance, unemployment insurance claims, and worker’s compensation claims and provides expert advise on human resource related issues.

In fact, before starting Work Comp Staffing Solutions in 2007, I owned and operated a 60 office staffing company I partnered with a PEO for about 25 of my staffing offices for about 10 years.    So in addition to promoting PEO services for staffing companies, I am a very happy former client of a PEO.

Contacts us at https://StaffingCompSolutions.com/contact-us/  (202-302-1212) and let us help you start enjoying the benefits of partnering with a PEO.

All the best
David
David Schek
President
www.StaffingCompSolutions.com
david@StaffingCompSolutions.com
American Staffing Association Member
California Staffing Association Member
Exclusive PEO Broker for the United States Staffing Association